Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (1) TMI 670 - AT - Income TaxConsideration for administrative support functions received by appellant - whether services involved in the agreement satisfy the "make Available" criteria or not? - Held that:- In the present case, the assessee has not provided adequate details before the Assessing Officer as well as before the ld DRP. Before us, also, no evidences were laid but assessee attempted to press upon only the legal arguments. Before laying down the facts of a case reliance on judicial precedents becomes an exercise in futile. Therefore, as assessee has not provided the complete details, in the interest of justice, we set aside the whole issue back to the file of ld Assessing Officer for deciding whether the services involved in the agreement satisfy the "make Available" criteria or not. We also direct assessee to provide complete details about the services showing their nature, manner of rendering and demonstrate before the AO that the services are of such a nature that recipient would not be able to perform them on its own. Needless to say, that proper opportunity of adducing information as well as the hearing shall be granted to assessee before deciding the issue. In the result ground, No. 1 of the appeal of the assessee is allowed with above direction. Grossing up the above services by the amount of tax deduction at source - Held that:- As we have already set aside the whole issue of determination of fees for technical services back to the file of the ld Assessing Officer the issue of grossing up of those services is related to that issue only, in the interest of justice, we also set aside ground No. 2 of the appeal of the assessee to the file of Assessing Officer. Charging of interest u/s 234B - Held that:- The issue is squarely covered in favour of the assessee by the decision of the Hon'ble Delhi High Court in case of DIT (International Taxation) Vs. GE Packaged Power Inc. (2015 (1) TMI 1168 - DELHI HIGH COURT), wherein, it has been held that where assessee is non-resident company, entire tax to be deducted at source at payments made by the payers to it and there was no question nof payment of advance tax by the assessee, therefore, revenue could not charge any interest u/s 234B.
|