Tech Data (Singapore) Private Limited Vs DCIT (ITAT Mumbai)
The appeal was filed by the assessee against the order passed by the CIT (DRP-2)-2, Mumbai for Assessment Year 2020-21. The assessee challenged the validity of the notice issued under section 143(2), the taxability of receipts from sale/distribution of off-the-shelf software and management service fees under Article 12 of the India-Singapore Double Taxation Avoidance Agreement (DTAA), levy of interest under sections 234A and 234B, and initiation of penalty proceedings under section 274 read with section 270A of the Income-tax Act.
The assessee filed its return of income on 31.12.2020 declaring total income of Rs.58,48,510. The return was selected for scrutiny, and a notice under section 143(2) was issued on 29.06.2021. The assessee, a Singapore-incorporated company engaged in the distribution and resale of hardware and software, earned Rs.58,48,511 from sale of hardware/software products and Rs.34,11,68,364 as management service fees during the relevant year. It treated both receipts as non-taxable in India under the “make available” clause contained in Article 12 of the India-Singapore DTAA.
Ground No. 1 – Validity of Notice under Section 143(2)
The Tribunal recorded that during the appellate proceedings no submissions were advanced by the assessee on the challenge to the notice issued under section 143(2), the issue being treated as academic. Accordingly, the ground was dismissed.
