Case Law Details
ITO Vs Eshakti Com Pvt Limited (ITAT Chennai)
The legal case between ITO (Income Tax Office) and Eshakti Com Pvt Ltd has been a subject of interest for experts in the field of taxation and international law. The case involves complexities around the taxation of ‘Fee for Technical Services’ (FTS) and the interpretation of Double Taxation Avoidance Agreement (DTAA) between India and the USA.
The dispute revolves around Assessment Years 2014-15 & 2015-16. Eshakti, an e-commerce platform selling designer clothes mainly in the USA, reimbursed certain expenses to its wholly owned subsidiary (WOS) in the USA. The Assessing Officer (AO) argued that these payments were subject to Tax Deduction at Source (TDS) under section 40(a)(i) of the Income Tax Act.
The main issues in the case included:
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