| The Tax Publishers2020 TaxPub(DT) 3538 (Bang-Trib) INCOME TAX ACT, 1961
Section 199
Where the assessee contended that it made offshore supply of equipment outside India and income therefore, was not taxable in India as title in equipment was passed on by assessee company to Indian entity outside India and payments pertaining to Off-shore supply were received by company outside India then the assessing officer was directed to ascertain whether amounts towards as off shore supply contracts were received outside the country and if yes then provide credit for TDS and issue refund accordingly.
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Tax deduction at source - Tax credit for TDS under section 199 - Payments received by assessee for off-shore supply contracts outside made -
Assessee based at Sweden engaged in power and automation technologies for utility and industry customers claimed TDS credit of Rs. 30,21,93,607 but AO granted credit to the extent of Rs. 1,71,15,646 which resulted in short TDS credit of Rs. 28,50,77,961. Assessee submitted that section 199 was not applicable, as payments received by assessee for off-shore supply contract were not taxable in India as title in equipment was passed on by assessee company to Indian entity outside India and payments pertaining to Off-shore supply were received by company outside India and since, off shore supply contracts were not taxable in India but TDS was deducted in India, therefore, assessee was eligible for refund of TDS credit. Held: Matter remanded to AO to first examine as to whether amounts received towards off-shore supply contracts by assessee were recived outside the country.
Relied:Arvind Murjani Brands (P) Ltd. v. ITO (2012) 21 Taxmann.com 131 (Mum) : 2012 TaxPub(DT) 2466 (Mum-Trib).
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2012-13
IN THE ITAT, BANGALORE 'A' BENCH
G. MANJUNATHA, A.M. & PAVAN KUMAR GADALE, J.M.
ABB AB C/o ABB India Ltd. v. Dy. CIT
IT(I.T)A Nos. 464/Bang/2018 & 2878/Bang/2019
A.Ys. 2012-13 & 2013-14
31 August, 2020
Assessee by : Percy Pardiwala, Advocate.
Revenue by: S. Sundar Rajan, Addl. Commissioner (Departmental Representative) & K.V. Arvind, Standing Counsel for Department
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