Home › Income-Tax Act › ACIT v. Tata Consultancy Services Ltd (2020) 188 DTR 39 / 203 TTJ 146 (Mum)(Trib.)

ACIT v. Tata Consultancy Services Ltd (2020) 188 DTR 39 / 203 TTJ 146 (Mum)(Trib.)

S. 40(a)(ii) : Amounts not deductible – Rates or tax – Tax paid abroad – State (local) taxes paid by assessee in countries having DTAA with India which are not eligible for relief under s. 90 or 91 do not attract disallowance under s. 40(a)(ii)- Matter remanded to the Assessing Officer for verification – Commission payment outside India – Not liable to deduct tax at source – Purchase pf software – Matter remanded . [ S. 2(43 ), 9 (1) (vii) 37 (1), 40 (a(ii), 90, 91, 195 ]

Tribunal held that  State (local) taxes paid by assessee in countries having DTAA with India which are not eligible for relief under s. 90 or 91 do not attract disallowance under s. 40(a)(ii)- Matter remanded to the Assessing Officer for verification  . Relied  Reliance Infrastructure P. Ltd. v. CIT (2017)  390 ITR 271 (Bom) (HC) ,  Not followed   Dy. CIT v. Tata sons Ltd. (2010) 48 DTR 321  (Mum) (Trib ) . Tribunal also held that the commission paid outside India  for service rendered out side India , not liable to deduct tax at source .  As regards purchase of software the matter remanded to the Assessing Officer to ascertain  the facts and decode accordance with the ( AY. 2009 – 10 )

Tribunal held that  State (local) taxes paid by assessee in countries having DTAA with India which are not eligible for relief under s. 90 or 91 do not attract disallowance under s. 40(a)(ii)- Matter remanded to the Assessing Officer for verification  . Relied  Reliance Infrastructure P. Ltd. v. CIT (2017)  390 ITR 271 (Bom) (HC) ,  Not followed   Dy. CIT v. Tata sons Ltd. (2010) 48 DTR 321  (Mum) (Trib ) . Tribunal also held that the commission paid outside India  for service rendered out side India , not liable to deduct tax at source .  As regards purchase of software the matter remanded to the Assessing Officer to ascertain  the facts and decode accordance with the ( AY. 2009 – 10 )