Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 1290 - AT - Income TaxIncome accrued or arised from the business connection in India - Fee for freight/logistic support services - Whether was in the nature of fee for technical services/fee for included services - HELD THAT:- As decided in assessee own case for Assessment Year 2010-11 [2020 (10) TMI 654 - ITAT DELHI] services rendered by the assessee do not fall within the purview of managerial , consultancy or technical services. The payment for freight and logistics cannot be treated as technical services. Similarly, the provisions of Section 9(1)(i) are not attracted in this case as no income has accrued or arised from the business connection abroad in India. The explanation states that only that part of income from business operations can be said to be accruing or arising in India only if it is relatable to the carrying of operations in India. Thus, the payment received by the assessee neither falls under Section 9(1)(i) or Section 9(1)(vii). Reimbursement of Global Account Management (“GAM”) charges treating the same in the nature for fee for technical services/fee for included services - HELD THAT:- Revenue has not disputed the fact that the Co-ordinate Bench for Assessment Year 2010-11 [2020 (10) TMI 654 - ITAT DELHI] held that business operations of the assessee, we hold that the services rendered by the assessee do not fall within the purview of managerial , consultancy or technical services. The payment for freight and logistics cannot be treated as technical services. Similarly, the provisions of Section 9(1)(i) are not attracted in this case as no income has accrued or arised from the business connection abroad in India. The explanation states that only that part of income from business operations can be said to be accruing or arising in India only if it is relatable to the carrying of operations in India. Thus, the payment received by the assessee neither falls under Section 9(1)(i) or Section 9(1)(vii). Disallowance of reimbursement of lease line charges holding that the amount is in the nature of royalty - HELD THAT:- As in assessment Year 2004-05 in the assessee’s own case wherein the issue was decided in favour of the assessee by the Co-ordinate Bench of Tribunal. Levying surcharge and education cess - Addition u/s 40(a)(ia) - HELD THAT:- As relying on Sesa Goa case [2020 (3) TMI 347 - BOMBAY HIGH COURT]. we find that the legislature, in Section 40(a)(ii) has provided that “any rate or tax levied” on “profits and gains of business or profession” shall not be deducted in computing the income chargeable under the head “profits and gains of business or profession”. There is no reference to any “cess”. Obviously therefore, there is no scope to accept Ms. Linhares's contention that “cess” being in the nature of a “Tax” is equally not deductable in computing the income chargeable under the head “profits and gains of business or profession”. Acceptance of such a contention will amount to reading something in the text of the provision which is not to be found in the text of the provision in Section 40(a)(ii). - Decided in favour of assessee.
|