Case Law Details
Steria (India) Ltd. Vs. ACIT (ITAT Delhi)
Ground number 11 is with respect to the disallowance of management services fees for non-deduction of tax u/s 40 (a) (i) of the act amounting to ₹ 206,044,024 incurred on account of management services fees, held to be fees for technical services on which tax deduction at source u/s 195 of the act should have been done by the assessee and therefore disallowance was made. The learned dispute resolution panel also upheld the order of the learned assessing officer holding that payment made to groupe Steria SCA France is also in the nature of fees for technical services in terms of article 13 of the India France double taxation avoidance agreement read with protocol thereto. The above finding of the learned dispute resolution panel was based on the order of the authority of the advance ruling. The above issue was challenged before the honourable High Court against the order of authority for advance ruling and honourable High Court decided this issue in favour of the assessee. The identical issue arose in the case of the assessee for certain other years wherein the coordinate bench, following the order of the honourable High Court, decided the issue in favour of the assessee holding that assessee is not required to deduct any tax at source u/s 195 of the act on management fees paid to the France entity and therefore disallowance for non-deduction of tax invoking the provisions of Section 40(a)(i) is not sustainable. This issue is also decided by in case of the assessee for assessment year 2012 – 13 and 2013 – 14 by this order wherein the disallowance is deleted. For similar reasons given therein, we also direct the learned assessing officer to delete the above disallowance for non-deduction of tax. In view of this ground number 11 is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
1. ITA No. 741 (Del) of 2017 is filed for assessment year 2012-13, ITA. No. 3992 (Del) of 2017 is filed for assessment year 2013-14 and ITA. No. 5745 (Del) of 2018 is filed for Assessment year 2014-15 by M/s. Steria (India) Limited, (The Assessee/ Appellant). As some common issues are involved, for the sake of convenience, these were heard together, and are being disposed of by this consolidated order. Stay petitions were also heard on 17 July 2020, which are also disposed of by this order for all these years.
2. ITA No. 741/Del/2017 for AY 2012-13 is filed by the assessee against the assessment order passed u/s 143 (3) read with Section 144C of The Income Tax Act, 1961[ The Act] dated 5/12/2016 passed by The Additional Commissioner Of Income Tax, Special Range – 8, New Delhi (The Learned Assessing Officer/ AO ) wherein the returned income of ₹ 1,132,764,007 370 filed by the assessee on 29/11/2012 is assessed at ₹ 1,515,053,700/–. The assessee has raised following grounds of appeal.-
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