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2014 (7) TMI 1299 - HC - Income TaxTaxability in India - Payment on account of technical services to a non-resident - Whether the sum paid or credited to the account of the foreign resident by the assessee on account of service rendered in relation to forex derivative transactions is chargeable to tax in India under Section 9(1)(vii)? - whether the assessee was liable to deduct tax? - HELD THAT:- The assessee has received whatever services have been rendered only in India. The media used for the purpose of communicating the service has not been disclosed. Even if we presume that the service was rendered through electronic media, the conclusion is irresistible that the process of rendering services could not have been concluded outside India. We are as such of the opinion that even without the amendment introduced by the Finance Act, 2010, the liability of the foreign resident to taxation under the Indian laws was there. The amendment introduced by the Finance Act, 2010 has specifically been made with retrospective effect from 1st June, 1976. These are clarificatory amendments. They always have a retrospective effect. In this case expressly they have been made retrospective. In the matter of taxation, equity has no place. When a law has been amended with retrospective effect Court has to proceed on the basis that the amendment was always there with effect from 1st June, 1976. Therefore, the transaction which took place during the financial year 2007-08 could not have been saved, in any case. The second submission of Mr. Murarka is, therefore, not acceptable. First question formulated above is answered in the affirmative and in favour of the revenue. Second question is a consequential question and is also answered in the affirmative and in favour of the revenue.
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