Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1709 - HC - Income TaxTDS u/s 195 - Disallowance u/s 40(a)(ia) - tds liability in respect of activities abroad - Held that:- Assessee-a public sector company is engaged in engineering consultancy and contract work. It provides engineering and technical consultancy services and support for execution of contract on turnkey basis in the oil and hydrocarbon/gas sectors. Its return for AY 2010-11 declared income in excess of 715 crores and was processed but later scrutiny was undertaken and a sum of ₹ 94,91,410/- was added on the ground that the amounts paid to nonresident foreign agent whose services were utilized were taxable under Sections 9(1)(i) and 9(1)(vii)(b) of the Act. The services provided by the agent were assistance, in the tendering process undertaken by the assessee, in response to foreign government public tenders. This Court notices that the ITAT has followed the judgment of the Division Bench of this Court in Commissioner of Income Tax vs. Eon Technology (P) Ltd. [2011 (11) TMI 20 - DELHI HIGH COURT] where the Court in similar circumstances held that providing such services, in respect of activities abroad, do not constitute fee for technical services and therefore, disallowable under Section 40(a). In view of these circumstances, no substantial question of law arises.
|