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2012 (5) TMI 261 - HC - Income TaxNon deduction of TDS architectural work - Deduction of interest paid on loads whereas interest free loans granted to sister concerns - commercial expediency - Article 14 of DTAA with China - held that:- The situs or the place of residence of the recipient who renders and performs professional services determines the place/country where the said income is taxable. In the present case, M/s. HOK International (Beijing) Limited was a China based company and had rendered “professional services” from there. No amount therefore will be taxable in India. The assessee was not liable to deduct tax at source on the said services and the tribunal has rightly held that Section 40(a)(ia) is not attracted. - Decided in favor of assessee. Deduction of interest - commercial expediency - held that:- matter remitted to the tribunal for deeper scrutiny and examination. The tribunal will re-examine the issue and record factual finding and apply the legal ratio explained in S.A. Builders Ltd. (2006 (12) TMI 82 (SC)).
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