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Income Tax Officer, International Taxation Versus M/s Brahmos Aerospace Pvt. Ltd.

2016 (9) TMI 705 - ITAT DELHI

TDS u/s 195 - P.E. in India - payments made to foreign entities in nature of rent, advertisement and exhibition expenses - Held that:- The details 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 ren .....

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ightly 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 - Dated:- 14-9-2016 - Shri H. S. Sidhu, Judicial Member Department by : None Assessee by : Shri Gagan Kapoor, Adv. & Sh. .....

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e, Ld CIT(A) has erred in adjudicating on the nature of payment and liability to withhold tax as it is beyond the purview of the provisions of the section 154 of the Act, as held by the AO. 1.2 an the facts and circumstance of the case, Ld CIT(A) has erred not appreciating the fact that there is no mistake apparent from record in processing of Form 27Q, as held by the AO in order u/s 154 which was the subject matter of appeal before CIT(A) 1.3 On the facts and circumstance of the case, Ld CIT(A) .....

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erred 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 .....

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outside India and Advertisement in foreign journals towards display of its products. On these payments, it had erroneously deducted the TDS at minimum rates. However, as per the intimation a rate of 20% has been applied by the AO owing to non-availability of foreign parties. Thereafter, AO has rejected the application of the assessee filed u/s. 154 of the I.T. Act vide his order passed u/s. 154 of the I.T. Act, 1961 on 22.2.2013. 3. Aggrieved with the aforesaid order, assessee preferred an appe .....

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d view that no useful purpose would be served 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 .....

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TDS as furnished by the appellant, it is seen that taxes have been withheld by the appellant 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 In .....

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