IT/ILT : Payment made by assessee, an Indian company to a US company for utilizing telecom services in USA did not constitute fee for technical services
IT/ILT : Section 10B being an exemption provision, exemption has to be allowed before set off of brought forward business losses of assessee
IT/ILT : Liability to deduct tax at source under section 195 can be fastened on an assessee on basis of retrospective amendment to said section
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[2014] 52 taxmann.com 115 (Bangalore - Trib.)
IN THE ITAT BANGALORE BENCH 'B'
Income-tax Officer, Ward 11 (1), Bangalore
v.
Clear Water Technology Services (P.) Ltd.*
N.V. VASUDEVAN, JUDICIAL MEMBER
AND JASON P. BOAZ, ACCOUNTANT MEMBER
IT APPEAL NO. 1146 (BANG.) OF 2014
[ASSESSMENT YEAR 2010-11]
SEPTEMBER 12, 2014
I. Section 9, read with sections 195 and 40(a)(i), of the Income-tax Act, 1961 and article 12 of DTAA between India and USA - Income-Deemed to accrue or arise in India (Fees for technical service) - Assessment year 2010-11 - Whether payment made by assessee, an Indian company to a US company for utilizing telecom services in USA did not constitute fee for technical services as said payments were for use of bandwidth provided for down linking signals in US; and said payments were not in nature of managerial, consultancy or technical services nor was it for use of or right to use industrial, commercial or ascientific equipment - Held, yes [Paras 10-15] [In favour of assessee]
II. Section 195, read wiht section 40(a)(i), of the Income-tax Act, 1961 - Deduction of tax at source - Payment to non-resident (Applicability of retrospective amendment) - Assessment year 2010-11 - Whether liability to deduct tax at source under section 195 can be fastened on an assessee on basis of retrospective amendment to said section - Held, yes [Para 15] [In favour of assessee]
III. Section 10B of the Income-tax Act, 1961 - Export Oriented undertaking (Computation of exemption) - Assessment year 2010-11 - Whether section 10B being an exemption provision, exemption under section 10B has to be allowed before set off of brought forward business losses of assessee - Held, yes [Para 8] [In favour of assessee]
Circulars and Notifications : Circular No. 7, dated 16-7-2013
IT/ILT : Section 10B being an exemption provision, exemption has to be allowed before set off of brought forward business losses of assessee
IT/ILT : Liability to deduct tax at source under section 195 can be fastened on an assessee on basis of retrospective amendment to said section
■■■
[2014] 52 taxmann.com 115 (Bangalore - Trib.)
IN THE ITAT BANGALORE BENCH 'B'
Income-tax Officer, Ward 11 (1), Bangalore
v.
Clear Water Technology Services (P.) Ltd.*
N.V. VASUDEVAN, JUDICIAL MEMBER
AND JASON P. BOAZ, ACCOUNTANT MEMBER
IT APPEAL NO. 1146 (BANG.) OF 2014
[ASSESSMENT YEAR 2010-11]
SEPTEMBER 12, 2014
I. Section 9, read with sections 195 and 40(a)(i), of the Income-tax Act, 1961 and article 12 of DTAA between India and USA - Income-Deemed to accrue or arise in India (Fees for technical service) - Assessment year 2010-11 - Whether payment made by assessee, an Indian company to a US company for utilizing telecom services in USA did not constitute fee for technical services as said payments were for use of bandwidth provided for down linking signals in US; and said payments were not in nature of managerial, consultancy or technical services nor was it for use of or right to use industrial, commercial or ascientific equipment - Held, yes [Paras 10-15] [In favour of assessee]
II. Section 195, read wiht section 40(a)(i), of the Income-tax Act, 1961 - Deduction of tax at source - Payment to non-resident (Applicability of retrospective amendment) - Assessment year 2010-11 - Whether liability to deduct tax at source under section 195 can be fastened on an assessee on basis of retrospective amendment to said section - Held, yes [Para 15] [In favour of assessee]
III. Section 10B of the Income-tax Act, 1961 - Export Oriented undertaking (Computation of exemption) - Assessment year 2010-11 - Whether section 10B being an exemption provision, exemption under section 10B has to be allowed before set off of brought forward business losses of assessee - Held, yes [Para 8] [In favour of assessee]
Circulars and Notifications : Circular No. 7, dated 16-7-2013
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