DCIT 24(2), MUMBAI V. UNISYNTH CHEMICALS, MUMBAI

ITA 6699/MUM/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3202 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2009-2010
• Appeal Filed On: 05-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S SENT H IL KUMARAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH F, MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER ITA NO.6699/M/2014 ASSESSMENT YEAR: 2009-10 DCIT 24(2), R.NO.601, C-13, 6 TH FLOOR, B.K.C. BANDRA(E), MUMBAI - 51 VS. M/S. UNISYNTH CHEMICALS, 106-107, ADVENT ATRIA, CHINCHOLI BUNDER ROAD, MALAD (W), MUMBAI 400 064 PAN: AAAFU1724D (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI VIMAL PUNMIYA, A.R. REVENUE BY : SHRI S. SENTHIL KUMARAN, D.R. DATE OF HEARING : 07.06.2016 DATE OF PRONOUNCEMENT : 15.06.2016 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 27.08.2014 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2009-10. 2. THE SOLE ISSUE RAISED BY THE REVENUE IN THIS APP EAL IS AGAINST THE ACTION OF THE LD. CIT(A) IN DELETING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) UNDER SECTION 4 0(A)(IA) FOR NON DEDUCTION OF TDS ON THE REMITTANCE MADE BY THE ASSESSEE ON ACCOU NT OF COMMISSION PAID TO THE OVERSEES AGENTS NAMELY PLANNING COML IMPORTADOR A LTD. BRAZIL. THE AO OBSERVED THAT THE ASSESSEE WAS LIABLE TO DEDUCT TDS ON SUCH PAYMENTS UNDER SECTION 195 OF THE ACT. 3. THE LD. CIT(A), HOWEVER, DELETED THE DISALLOWANC E MADE BY THE AO OBSERVING THAT THE PAYMENTS WERE MADE TO THE NON RE SIDENT AND OUT OF INDIA ITA NO.6699/M/2014 M/S. UNISYNTH CHEMICALS 2 AND THAT NO INCOME CHARGEABLE TO TAX UNDER THE INDI AN INCOME TAX HAS ACCRUED TO THE SAID FOREIGN AGENT. THE PAYMENT RECEIVED BY THE FOREIGN AGENT FROM THE ASSESSEE WAS NOT CHARGEABLE TO TAX IN INDIA. HE, T HEREFORE, RELYING UPON THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE O F GE INDIA TECHNOLOGY CENTRE (P) LTD. VS. CIT (2010) 10 SCC 29 AND SEVER AL OTHER HIGH COURTS AND TRIBUNAL DECISIONS DELETED THE DISALLOWANCE MADE BY THE AO. THE REVENUE, THUS, HAS COME IN APPEAL BEFORE US. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND HAVE ALS O GONE THROUGH THE RECORDS. ADMITTEDLY, THE COMMISSION PAYMENT MADE BY THE ASSESSEE IN THIS CASE HAS BEEN MADE TO OVERSEES AGENT WHO HAS NO PER MANENT ESTABLISHMENT IN INDIA. THE INCOME OF THE FOREIGN AGENT ON THIS ACC OUNT THUS IS NOT CHARGEABLE TO TAX IN INDIA. THE LD. CIT(A), RELYING UPON THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF GE INDIA TECHNOLOGY C ENTRE (P) LTD. VS. CIT (SUPRA) AND VARIOUS OTHER DECISIONS, HAS, THUS, RIG HTLY SET ASIDE THE DISALLOWANCE MADE BY THE AO. WE, THEREFORE, DO NOT FIND ANY MER IT IN THE APPEAL OF THE REVENUE AND THE SAME IS THEREFORE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 15.06.2016. SD/- SD/- (G.S. PANNU) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 15.06.2016. * KISHORE, SR. P.S. COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.