Case Law Details
Grant Thornton India LLP Vs JCIT (ITAT Delhi)
The intricate world of international taxation often poses complex challenges for businesses operating across borders. This is exactly the case in the recent Indian tax tribunal case of Grant Thornton India LLP v. Joint Commissioner of Income-tax (ITAT Delhi), ITA No. 274/Del/2019, Dated: 31/03/2023 where a seemingly straightforward payment to a German accounting firm led to a nuanced legal battle with significant implications for international transactions.
In this article, we will discuss the details of this case, analyzing its arguments, rulings, and wider impact on the international tax landscape.
Grant Thornton India LLP, a well-established Indian company, provides international accounting and advisory services to clients both within India and abroad. During the assessment year 2013-14, the company made professional fee payments to Warth & Klein Grant Thornton AG, a partnership firm of Chartered Accountants based in Germany. These payments were for services like the due diligence of a client and the valuation of shares. However, what appeared to be a routine business expense soon became the subject of intense tax scrutiny.
The Bone of Contention:
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