{"id":49997,"date":"2025-01-16T20:20:44","date_gmt":"2025-01-16T14:50:44","guid":{"rendered":"https:\/\/itatonline.org\/digest\/dy-cit-osd-v-aspire-systems-india-p-ltd-2024-110-itr-1-232-ttj-387-trib-chennnaitrib-4\/"},"modified":"2025-01-16T20:20:44","modified_gmt":"2025-01-16T14:50:44","slug":"dy-cit-osd-v-aspire-systems-india-p-ltd-2024-110-itr-1-232-ttj-387-trib-chennnaitrib-4","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/dy-cit-osd-v-aspire-systems-india-p-ltd-2024-110-itr-1-232-ttj-387-trib-chennnaitrib-4\/","title":{"rendered":"Dy. CIT (OSD) v. Aspire Systems India P. Ltd. (2024) 110 ITR 1 \/ 232 TTJ 387 (Trib) (Chennnai)(Trib)"},"content":{"rendered":"<p>Held that\u00a0 the contract between the assessee and AU showed that the payment made by the assessee was directly related to services rendered to customers outside India and income earned therefrom formed part of the assessee\u2019s business. Therefore, it fell under the category of services utilised for a business or profession carried on by such person outside India. The services were carried on outside India by a non-resident for offshore customers because the assessee\u2019s customers were situated outside India and services were utilised for earning income from sources outside India. Therefore, the second part of the exception under section\u00a09(1)(vii)\u00a0was also satisfied.\u00a0 The services were not rendered in India, the person to whom the payment was made was a non-resident and finally the amount paid was a business income of the recipient, who did not have any permanent establishment in India. Therefore, payment made to the non-resident towards services rendered in connection with installation and testing services was not chargeable to tax in India as it was covered under the exception to section\u00a09(1)(vii).\u00a0 Section\u00a0195\u00a0was not attracted and the question of disallowance under section\u00a040(a)(i)\u00a0did not arise. The Assessing Officer erred in contending that there should be a permanent establishment or branch office outside India to come under the purview of the exception under section\u00a09(1)(vii)(b), which nowhere mentioned to that effect. Therefore, payment made to a non-resident for rendering contract services outside India came under section\u00a09(1)(vii)(b)\u00a0and, thus, was not chargeable to tax in India. Hence, the assessee need not deduct tax at source under section\u00a0195\u00a0on such payment. Consequently, the payment could not be disallowed under section\u00a040(a)(i). As a result, the Commissioner (Appeals) had rightly deleted the additions made by the Assessing Officer. <em>(<\/em>AY. 2010-11, 2012-13, 2013-14, 2016-17, 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Services rendered out side India-Not liable to deduct tax at source-Order of CIT(A) deleting the addition  is affirmed. [S.9(1)(vii), 195]  <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-49997","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-d0p","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=49997"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49997\/revisions"}],"predecessor-version":[{"id":49998,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49997\/revisions\/49998"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=49997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=49997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=49997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}