TMI Blog2016 (9) TMI 705X X X X Extracts X X X X X X X X Extracts X X X X ..... receipts are taxable in India only if payee had ‘PE’ in India within meaning of relevant DTAA. From the facts, it has been observed that foreign entities did not have PE in India and therefore payments were not chargeable to tax in India. Accordingly, the assessee was under no obligation to deduct taxes at source while making these payments. Accordingly, Ld. CIT(A) has rightly held that the taxes were not required to be withheld u/s. 195(1) of the Act on the impugned payments made by the assessee and allow the issue in dispute in favour of the assessee which in my considered opinion, does not need any interference on my part, hence, uphold the order of the Ld. CIT(A) on the issue in dispute - Decided against revenue - ITA No. 966/Del/2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debatable issue. 2. The appellant craves to add, amend, modify or alter any grounds of appeal at any time or before the hearing of the appeal. It is certified that the above referred order of the CIT(A) in this case was received in the office of the undersigned on 07.01.2015 and the date of limitation expires on 08.03.2015. 2. The brief facts of the case are that the assessee had filed an Application u/s. 154 requesting for rectification of mistake apparent from record in the intimation u/s. 200A dated 3.11.2011. In terms of the said intimation, a sum of ₹ 2360700/- was determined as payable u/s. 200A by the deductor in the TDS statement (Form 27Q) filed by it on 27.7.2010 for the First Quarter of the Financial Year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to serve the notice again and again to the Department, therefore, I am deciding this Appeal as Exparte qua Department, after hearing the Ld. Counsel of the assessee and perusing the records. 6. Ld. Counsel of the Assessee has relied upon the order of the Ld. CIT(A) and stated that Ld. CIT(A) has passed a well reasoned order which does not need any interference on my part, hence, the same may be upheld and accordingly, the appeal of the Revenue may be dismissed. 7. I have heard the Ld. Counsel of the Assessee and perused the records, especially the impugned order passed by the Ld. CIT(A). I find that Ld. First Appellate Authority has elaborately discussed the issue in dispute by considering the submissions of the assessee and adjudicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls of payments and TDS as furnished by the assessee that the taxes have been withheld by the assessee after grossing up and taxes so withheld have been deposited into credit of central government. Therefore, pre-conditions as mentioned in section 248 of the Act are satisfied. Further, it is seen that payments made to foreign entities are in nature of rent, advertisement and exhibition expenses and therefore are in the nature of business receipts in hands of payee. Such business receipts are taxable in India only if payee had PE in India within meaning of relevant DTAA. From the facts, it has been observed that foreign entities did not have PE in India and therefore payments were not chargeable to tax in India. Accordingly, the assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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