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2018 (6) TMI 400 - ITAT MUMBAITDS u/s 195 - advertisement expenditure and professional and consultancy fee u/s.40(a)(i) - services rendered outside India to non-residents - PE in India - Held that:- Both these payments were made by the UK branch of the assessee which was separate balance sheet, P & L account and filed return of income in UK and thus these for services were rendered by the foreign residents outside India having no PE in India. In agreement with the CIT(A) on this issue that Section 9(1) is applicable. CIT(A) also noted that assessee has not made any application u/s.195(2) therefore, the tax must be deducted u/s.195(1) - on the perusal of Rule 37BB which in respect of furnishing of information for payments in foreign currency made to non-residents not being a company or to a foreign company the provisions of 195(6) are effective w.e.f. 01/07/2009. The form No.15 CA and 15CB were not required to be given in respect of payments to non-resident Indians for the current year. No TDS is required to be deducted on the payment of advertisement expenses and technical and professional charges to foreign national as these recipients were foreign residents having no PE in India and the services were also rendered by them outside India. Set aside the order of CIT(A) by holding that no tax at source is required to be deducted at source. The AO is directed accordingly. Disallowance u/s.14A - Held that:- We direct the AO to delete the addition as the case of assessee is squarely covered by the case of Godrej & Boyce Manufacturing Co. Ltd., vs. Dy. Commissioner of Income Tax [2010 (8) TMI 77 - BOMBAY HIGH COURT] in which it has been held that recording of satisfaction is mandatory requirement without which the provision Section 14A r.w.Rule 8D cannot be applied. We set aside the order of CIT(A) and we direct the AO to delete the disallowance. - Decided in favour of assessee
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