2016 (4) TMI 1055 - SUPREME COURT
ITC Limited Gurgaon Versus Commissioner of I.T. (TDS) Delhi
TDS u/s 192 - short/non deduction of tax at source on account of banquet and restaurant tips collected and paid by it to its employees - assessee in default - Held that - Payments of collected tips made in the manner would not be payments made by or on behalf of an employer. We agree with the statement of law that there is no ground for saying that these tips ever became the property of the employers. Even if the box were kept in the actual custody of the employer he would have no title to the money as he would hold such money in a fiduciary capacity for and on behalf of his employees. In the ....... - .......
2016 (4) TMI 817 - DELHI HIGH COURT
Pr. CIT Versus The Bank of Tokyo Misubishi UFJ Ltd.
Interest paid to the HO and interest received from Indian branches - Held that - This issue appears to be covered against the Revenue by the decision of the Calcutta High Court dated 23rd December 2010 in ABN Amro Bank(2010 (12) TMI 340 - CALCUTTA HIGH COURT ). This Court declines to frame any question on this issue of interest paid to the HO as well as the interest received from the Indian branches. - Deferred bank guarantee commission - Held that - This issue appears to be covered in favour of the Assessee by the decision of the Calcutta High Court in CIT v. Bank of Tokyo Ltd. (1993 (5) TMI ....... - .......
2016 (4) TMI 317 - DELHI HIGH COURT
PGS Exploration (Norway) As Versus Additioanal Director of Income Tax
Fees for technical services - establishment of permanent establishment ( PE ) in India - Assessee s contention that services in question fell within the scope of construction, assembly, mining or like project - Held that - Prospecting for or extraction or production of mineral oil could be termed as mining operations and consequently provided that expression mining projects or like projects as occurring in Explanation 2 to Section 9(1)(vii) of the Act would also cover rendering of services like imparting of training and carrying out drilling operations for exploration or exploitation of oil an ....... - .......
2016 (4) TMI 413 - ITAT KOLKATA
Gifford and Partners Ltd. Versus Deputy Director of International, Taxation (1) , Kolkata and Gifford and Partners Ltd. Versus Assistant Director of International, Taxation -1 (1) , Kolkata
TDS u/s 194J - disallowance under section 40(a)(ia) as payments made to the Indian sub consultants, for delay in deposit of TDS effected on such payments - existence of PE in India - Held that - Requirement of Article 5(1) of the DTAA is not satisfied in the present case. Carrying on of business involves the carrying on in a country of virtually any activity related to the business of the enterprise. As we have already seen the availability of office space for use by the Assessee at the premises of GRSE was for the limited purpose of rendering of services agreed between the Assessee and GRSE. ....... - .......
2016 (4) TMI 942 - ITAT CHENNAI
Shri M.G. Vasan Versus The Asstt. Commissioner of Income-Tax
Penalty u/s 271(1)(c) - claim made by the assessee that the interest on the Non-resident Non-repatriable account deposits is exempted from taxation - Held that - The assessee filed the return of income in the status of resident . In the note filed alongwith the return of income, the assessee claims that he was a non-resident upto assessment year 2001-02. The assessee has also indicated in the note filed alongwith the return of income that the investment made in the securities and bank deposits are out of the remittance made from abroad. - AO, after examining the claim of the assessee, found th ....... - .......
2016 (4) TMI 520 - ITAT MUMBAI
Interroute Communications Limited Versus Deputy Director of Income Tax, International Taxation 3 (1) , Mumbai
Receipts from Indian entities on account of connectivity charges - Taxation of the receipts as royalty - Held that - No services are made available in the sense that the recipient of service is enabled to apply the technology, and do the same work without recourse to the service provider. There is no transfer of technology here, and in that sense technical services are not made available. Undoubtedly, the services rendered by the assessee requires technical inputs, but that alone, as we have seen above, does not bring it in the ambit of fees for technical services taxable under article 13 of I ....... - .......
2016 (4) TMI 41 - ITAT MUMBAI
Hindustan Petroleum Corporation Limited Versus ADIT- (IT) - Range-3 (1) Mumbai
Business income/profits taxable in India as per the DTAA - payment made towards BEDS package for the refinery at Visakhapatnam - tds liability - whether payment is towards purchase of capital asset, that it was not for FIS, as contemplated under Article -12 of DTAA - Held that - If an assessee makes payment for basic engineering program or basic design to a non-resident entity and the supplier does not have a PE in India, such payments would not be taxed in India. If the assessee purchases BEDP out rightly it would amount to purchase of capital asset. But, if the payment is made for use of pro ....... - .......
2016 (3) TMI 1026 - SUPREME COURT
C.I.T. -4, Mumbai Versus M/s Kotak Securities Ltd.
TDS u/s 194J - transaction charges paid by a member of the Bombay Stock Exchange to transact business of sale and purchase of shares - whether amounts to payment of a fee for technical services rendered by the Bombay Stock Exchange? - Held that - There is no exclusivity to the services rendered by the Stock Exchange and each and every member has to necessarily avail of such services in the normal course of trading in securities in the Stock Exchange. Such services, therefore, would undoubtedly be appropriate to be termed as facilities provided by the Stock Exchange on payment and does not amou ....... - .......
2016 (4) TMI 590 - ITAT MUMBAI
Gujarat Pipavav Port Limited Versus Income tax Officer (Intl. Taxation) TDS-3, Mumbai
TDS u/s 195 - payments to non-resident entities - Taxability in India - withholding tax - payments made to Liftech as Royalty / Fees for Technical Services under Article12(3)(a) /12(4) of the India-USA Double Tax Avoidance Agreement ( DTAA ) - Held that - The definition of royalty under the DTAA under art. 12(3) useed the expression or for information concerning industrial, commercial or scientific experience ,that there was no parting of information concerning industrial, commercial or scientific experience by GIA when it issued the grading certificate,that under sub-cl. (4) the payments rece ....... - .......
2016 (4) TMI 953 - ITAT MUMBAI
KPMG, Lodha Excelus Versus ACIT 11 (2) , Mumbai and Vica-Versa
TDS u/s 195 - Disallowance u/s. 40(a)(i) - professional fees paid outside India without deduction of tax at source - existence of PE in India - Held that - Looking into the nature of services rendered. It is seen that, firstly, none of these services fall in the nature of make-available of any technical knowledge, experience, skill, know-how or process. The provisions of Indo-U.S. and U.K. treaties are absolutely clear that in case of fees for technical services, it is essential that technical knowledge, skill, know-how should be made available to the assessee and the assessee should be at lib ....... - .......
2016 (4) TMI 1117 - ITAT MUMBAI
ADIT- (IT) - Range-4, Mumbai Versus M/s. Lloyds Register U.K. (Formerly known as Lloyd’s Register of Shipping) and Vica-Versa
Taxability of management charges - fee for technical services(FTS)under Article-13(2)(a)(ii) of the India-UK DTAA r.w.s.9(1)(vii) - Held that - The assessee had received ₹ 14, 78, 35, 401/-as royalty and ₹ 4.65 crores as MS, that it had claimed that managerial-charges, received by it, were not taxable in India, that the AO was of the view that notwithstanding two agreements entire management charges were taxable as FTS, that the FAA had held that half of the MS charges were to be taxed in India, that while deciding the appeal, he had not given any reason as to why 50 of the receipt ....... - .......
2016 (3) TMI 680 - ITAT DELHI
Bharti Airtel Limited Versus ITO (TDS) , Ward 1 (1) , New Delhi and vica-Versa
Fee for Technical Services - Payment of IUC by assessee to FTOS - Held that - No hesitation in upholding the submissions of the Ld. Counsel of the Assessee that, the payment in question cannot be considered as Fee for Technical Services in terms of section 9(1)(vii) read with Expln. 2 of the Act as inter connection facility and the service of the FTO in picking up, carrying and successful termination the call over their respective network is a standard facility and the and FTO in question does not render any technical services to the assessee under interconnect agreement. - Existence of make a ....... - .......
2016 (4) TMI 673 - ITAT KOLKATA
Trans Global PLC Versus Director of Income-tax (International Taxation)
Revision u/s 263 - whether Non-compete premium is taxable in the hands of the assessee under the head capital gains u/s. 55(2)(a) read with proviso (i) to section 28(va) - assessee is a non-resident company of UK in term of Article-7 of Double Taxation Avoidance Agreement (DTAA) with UK - Held that - It is not the case of the revenue that the assessee is having a permanent establishment in India and as such in term of Article-7 of DTAA, being non- compete premium received by assessee cannot be taxed in India. The AO while framing assessment u/s. 143(3) of the Act, after considering the provisi ....... - .......
2016 (3) TMI 829 - ITAT DELHI
Cargill Financial Services Asia Pte Ltd Versus Asstt. Director of Income-tax, Circle (1) , International Taxation, New Delhi
Amounts received from Indian associated enterprises - whether were in the form of interest or discounting charges? - assessee ( CFSA ), is a company incorporated in Singapore and is a tax resident of Singapore - Held that - A bare perusal of the observations of AO makes it very clear that he has not at all referred to any RBI Circular, FEMA provision which had bearing on the facts of the case and how the receipt in the hands of assessee took the colour of interest and not the discounting charges. - The conclusion drawn by ld. DRP is that as per the definition of interest in the Indian Income-t ....... - .......
2016 (3) TMI 540 - ITAT DELHI
Datamine International Ltd. Versus Addl. DIT, Range-1, International Taxation, New Delhi
Treating Business receipts towards sale of software as Royalty - Held that - Para 6 of Article 13, to the extent applicable, states that the provisions of paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of the royalties or fees for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or fees for technical services arise through a permanent establishment situated therein. In simple terms, this means that the amount falling under para 3 of Article 13 cannot be taxed as Royalties under par ....... - .......