Commissioner of Income Tax- IT and TP V. M/s. Louis Berger International Inc.,

ITTA/109/2022

AI Insights

The case involves multiple appeals by the Director of Income Tax, International Taxation, Bangalore against M/S Louis Berger International Inc., concerning the classification of certain reimbursed expenses as 'fees for technical services' under the Income Tax Act, 1961. The respondent was engaged by the National Highway Authority of India (NHAI) for technical advice and services in construction and road widening projects. The expenses incurred by the respondent for logistics and transport of their experts were reimbursed by NHAI. The primary legal question was whether these reimbursed expenses should be classified as 'fees for technical services' and thus taxable at a higher rate. The Income Tax Appellate Tribunal and the Commissioner of Income Tax (Appeals) had previously ruled in favor of the respondent, leading to the present appeals by the tax authorities.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 737584 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 27-09-2023
• Assessment Year: misc
• Other Referred Cases: CIT Vs. Tejaji Farasram Kharawalla Ltd. (1968) 67 ITR 95, Industrial Engineering Projects vs. CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: DEEPAK CHOPRA
• Assessee Lawyers: K MAMATA CHOUDARY
• Keywords: Fees For Technical Services; Income Tax; Reimbursement; Technical Services
• Section: 260-A; 1160(A)

Judgement Text

"IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD WEDNESDAY ,THE TWENTY SEVENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY INCOME TAX TRIBUNAL APPEAL Nos : 387 QF 2016j ITTA Uos. 47 of 2019 and ITTA Nos. 107 108 109 1 10 and 111 ol 2022 |TTA NO. 387 0F 2016 (Income Tax Tribunal Appeal Under Section 260 (A) of the Income Tax Act, I 961 against the order of the Incorne Tax Appellate Tribunal, Hyderabad Bench ' B ', Hyderabad in ITA No 1074 I Hyd/ 2004 for assessment Year 2001-2002 dated 30-08-2010 preferred against the Order of the Commissioner of Income Tax (Appeals)-lll, Hyderabad inlTANo. l13 /ACIT2(2)/ClT (A)-III/ 04-05 dated 30-0F2004 prelerred against the Order of the Asst Commissioner of Income Tax, Circle -2 (2),Hyderabad PANiGIR No. AAACL4067F/ L -034 dated 29-03-2004. Between: Director Of lncome Tax, lnternational Taxatton, Banglore. ... Petitioner AND M/S Louis Berger lnternational lNC., , 8-2-68413130,2nd Floor, Banjala Gre_en,_ _- ._ Road No,12, Banjara Hills, Hyderabad. ...RESPONDENT Counsel for the Appellant: Ms. K. MAMATA CHOUDARY Counsel for the Respondent: SRt DEEPAK CHoPRA FoR SRI \".aa,jfllrf;o .- |.T.T.A. NO. 47 0F 2019 (Incoure Tax Tribunal Appcal Under Section 1160 (A) oi the Income J'ar Act, l96l against the order of the Income Tax Appellate Tribunal, Hytlerabad Bench ' I) ', Hyderabad in ITA No 720 I Hyd/ 2005 for assessrnenr year 2002_2003 dated 30-6-20 t 0 preferred against the order of the conrmissioner of Income Tax (Appeals )- III, Hyderabad in iTA Nos. 110 &221 / ACI'I 2(2) (A)_m/ 04-05 dated 24-03-2005 preferred against the order of the Asst commissioner of Income Tax, Circle -2 (2), Hyderabad pAN/GIR No. AAACI_4067F1 l, _034 dated 09-02-2005 . Between: Director Of lncome Tax, lnternational Taxation, B;anglore. AND ... Petitioner M/S_ Lours Berger lnternational INC., , 8-2-6A4'30,2nd Floor, Banjara Green, Road No.12, Banjara Hills, Hyderabad ..ReSpOruOeruf Counsel for the Appellant: Ms. K. MAMATA (;HOUDARY Counsel for the Respondent: SRI DEEPAK CF|OPRA FOR SRI A. CHANDRA SHAKER |.T.T.A.NO. 107 0F 2022: Between: (Incorne Tax Tribunal Appeal Under Sectior. 260 (A) of the Incorne Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Hy.r I .I S .) o L) aj : 1 t:ijI 2 l1 ), r.. '1,,: ITTA No. 47 ot 2019 and l I i i i l I I I I I i I I I -.:r' "