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2016 (7) TMI 1468 - HC - Income TaxTDS u/s 195 - payments were made to several parties outside India for reimbursement of expenses incurred by the then KCIL (UK) (sub-contractor) for the purpose of Dahej Project - Held that:- There was absolutely no operation in India which would give rise to a tax liability in India as far as the foreign company was connected and Tribunal was, therefore, right in its conclusion." Learned C I T(A) relied upon the decision in the case of Wallace Pharmaceutical Pvt. Ltd.[2005 (9) TMI 26 - AUTHORITY FOR ADVANCE RULINGS] in which applicant was a Indian Company and tax resident of India. Penser is tax resident of USA but operating internationally. It was found from facts that Penser has rendered consultancy services in India, therefore, consultancy fees was held to be deemed income of Penser in India. The facts of this case are therefore, clearly distinguishable from the facts of this case. Considering the facts on this issue and in the absence of specific finding and material brought on record by the A O, we do not find any justification to sustain the findings of authorities below. We accordingly set aside the orders of authorities below and delete the entire disallowance - Decided in favour of assessee
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