Boeing India (P) Ltd. v. ACIT [ITA Nos. 2374 & 2375/Del/2018, dt. 27-11-2020] : 2020 TaxPub(DT) 5004 (Del-Trib)

Reimbursement of Seconded employee salaries paid by AE whether subject to TDS disallowance under section 40(a)(i)

Facts:

Assessee had reimbursed salary costs of certain seconded expatriate employees who were on the employment rolls of the assessee. Assessee did deduct TDS on salaries on these employee costs as well under section 192. These reimbursed amounts were subject to disallowance citing that no TDS was done as these were Fee for technical services under section 9(1)(vii). On appeal Commissioner (Appeals) concurred with the views of the assessing officer. On higher appeal --

Held in favour of the assessee that once the assessee has done TDS under section 192; to rechristen it as FTS was unwarranted thus no TDS disallowance was also called for.

Applied:

Assessee own case - Order, dated 17-8-2020 passed in ITA No. 9765/Del/2019 for assessment year 2015-16 : 2020 TaxPub(DT) 3204 (Del-Trib)

CIT, Delhi II v. Karl Storz Endoscopy India (P) Ltd. in ITA No. 13 of 2008 Order, dated 13-9-2010

Director of Income Tax v. HCL Infosystems Ltd. 274 ITR 261 (Del.) : 2005 TaxPub(DT) 0132 (Del-HC)

HCL Infosystems Ltd. v. DCIT in ITA Nos. 4068 to 4077/Del/2020 Order, dated 26-2-2002 : 2002 TaxPub(DT) 1244 (Del-Trib)

AT&T Communication Services (India) (P) Ltd. in ITA Nos. 354/Del/2017 & 1653/Del/2016 Order, dated 31-10-2018 : 2018 TaxPub(DT) 6884 (Del-Trib)

Addl. DIT (International Taxation) v. Mark and Spencer Reliance India (P) Ltd. (2013) 27 ITR (Trib) 448 (Mumbai) : 2013 TaxPub(DT) 2828 (Mum-Trib)

Dissented:

Centrica India Offshore (P) Ltd. v. CIT (2014) 364 ITR 336 (Delhi) : 2014 TaxPub(DT) 2335 (Del-HC)