Year: 2018

Archive for 2018


DCIT v. KPMG Advisory Services (P.) Ltd. (2018) 168 ITD 34 (Mum) (Trib.)

S.40(a)(ia):Amounts not deductible – Deduction at source -Reimbursement of expenses -Not liable to deduct tax at source- No disallowance can be made for failure to deduct tax at source .[ S. 194I ]

Vardhvinayak Township Development (P.) Ltd. v. DCIT (2018) 168 ITD 456 (Mum) (Trib.)

S.40(a)(ia):Amounts not deductible – Deduction at source – Recipients had offered the income ,hence no disallowance can be made . The AO was directed to verify said aspects

DCIT v. Vantage Advertising P. LTD. (2018) 61 ITR 564 (Kol.) (Trib)

S.40(a)(ia):Amounts not deductible – Deduction at source- Advertisement on hoardings- Short deduction of tax at source applying wrong section , no disallowance can be made. [ S. 194C, 194I ]

DCIT v. Associated Pigments Ltd. (2018) 61 ITR 553 (Kol) (Trib)

S.40(a)(ia):Amounts not deductible – Deduction at source – Payment to foreign shipping companies ,S. 172 is applicable hence not liable to deduct tax at source [ S. 172 ,194C, 195 ]

Powerware India P. Ltd. v. ITO (2018) 61 ITR 746 (Ctk) (Trib)

S.40(a)(ia):Amounts not deductible – Deduction at source -Retrospective operation — If the recipients had paid due taxes on the amount received from the assessee no disallowance can be made . AO was directed to verify whether the recipient has paid the taxes on amount received from the assesse [ S. 194A,194C ]

ACIT v. Manufax (India) S. B. (Agra)(Trib) , www.itatonline.org

S.40(a)(ia):Amounts not deductible – Deduction at source – Payment of commission to foreign agent –Not liable to deduct tax at source, hence , no disallowances can be made .[ S .5(2)(b),9(1)(i) , 195 ]

CIT v. Mira Exim Ltd. (2018) 400 ITR 28 (Delhi) (HC)

S.40(a)(ia):Amounts not deductible – Deduction at source – Payment being not fees for technical services ,not liable to deduct tax at source -DTAA-India –Canada [ S.9(2), Art 12 ]

Entrepreneurs (Calcutta) Pvt. Ltd. v. CIT (2018) 400 ITR 521 (Cal) (HC)

S.40(a)(ia):Amounts not deductible – Deduction at source-Compensation paid to joint venture –Not liable to o deduct tax at source – Disallowance was held to be not justified [ S. 194H, 194J ]

CIT v. NGC Networks (India)(Pvt. Ltd( 2018) 167 DTR 245 / 304 CTR 306/ (2021) 432 ITR 326 (Bom)(HC) , www.itatonline.org

S.40(a)(ia):Amounts not deductible – Deduction at source –. A party cannot be called upon to perform an impossible Act i.e. to comply with a provision not in force at the relevant time but introduced later by retrospective amendment. S. 40(a)(i) disallowance can be made only if the royalty falls under Explanation 2 to s. 9(1)(vi) but not if it falls under Explanation 6 to s. 9(1)(vi) [ S.9(1)(vi), 194C,194J, 195 ]

CIT v. Mitusubishi Corporation India (P.) Ltd. (2018) 252 Taxman 31 (Delhi)(HC) Editorial: Mitusubishi Corporation India (P.) Ltd. v.ACIT (2014) 62 SOT 58 (URO) / 41 taxmann.com 162 ( Delhi) (Trib)

S.40(a)(ia):Amount not deductible- Deduction at source-Purchase made from different group companies –Difference opinion – Matter was referred to Chief Justice for appropriate order -DTAA-India Japan –USA [ S.9(1)(i), 90, 195,Art ,24 ]