Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 1677 - HC - Income TaxTDS u/s 195 - financial services, for providing services such as Global coordinator and Lead Manager to the GDR offer - income deemed to accrue or arise in India - fees for technical services - Tribunal came to the conclusion that services rendered by Amas Bank were purely of a commercial nature and bore the character of income arising to it wholly outside India. Such services were neither rendered in India nor utilized in India - scope of explanation inserted by the Finance Act of 2010 w.r.e.f. 1.6.1976 in Section 9(1) - HELD THAT:- Through this explanation, thus, the legislature desired to delink the question of income deemed to have accrued or arisen in India from the requirement of the non-resident having a residence or place of business or business connection in India. This, however, did not imply that the basic requirement of income having arisen in relation to the activity in India and having connection to the consumption of such services in India was totally done away with. It provides that for the purpose of the said Section, the income of a non-resident would be deemed to accrue or arise in India under clauses (v),(vi) and (vii) of sub-section (1) and would be included in the total income of the non-resident whether or not such non-resident has a residence or place of business or business connection in India, or, the non-resident has rendered services in India. We are conscious that subsequent explanation which replaced the previous one by the Finance Act of 2010 has somewhat widened the scope of applicability of Section 9. The question of non-resident having rendered services in India is quite different from such services having been consumed by the assessee in India. - The appeals are dismissed
|