DCIT Vs Alten Global Technologies (ITAT Bangalore)
Summary : The appeal before the ITAT Bangalore was filed by the Deputy Commissioner of Income Tax, Circle-1(1)(1), Bengaluru, against the order of the Commissioner of Income Tax (Appeals) dated 02.07.2025 for Assessment Year 2020-21. The CIT(A) had allowed the assessee’s appeal against the assessment order.
The Revenue challenged the deletion of various disallowances made under Section 40(a)(i) of the Income Tax Act. The issues raised included payments made to Accord North America LLC, USA, which the Assessing Officer alleged were taxable as Fees for Technical Services (FTS) or Fees for Included Services (FIS) under Section 9(1)(vii) of the Act and Article 12 of the India-USA Double Taxation Avoidance Agreement (DTAA). The Revenue contended that the CIT(A) incorrectly classified the services as managerial in nature and held that tax deduction at source under Section 195 was not required.
The Revenue also challenged the deletion of disallowances relating to exhibition and stall charges paid to Farnborough International Ltd., UK, testing services paid to Accord Technology LLC, USA, and payments relating to payroll, tax consultation, work permits, and visa-related services for branches in Germany and the UK. According to the Revenue, these services were taxable in India and attracted TDS obligations under Section 195.
