Director of Income Tax (International Taxation) Vs Dun And Bradstreet Information Services India Pvt. Ltd. (Supreme Court of India)
The case before the Supreme Court of India arose from a dispute regarding applicability of tax deduction at source (TDS) under Section 195 of the Income-tax Act, 1961 on payments made for imported Business Information Reports. The assessee had made remittances to Dun & Bradstreet, USA without deducting TDS. The Assessing Officer held that TDS was applicable and passed an order under Sections 195 read with 201, which was upheld by the CIT(A).
Read HC Judgment in this case: Payments for Business Information Reports did not attract Section 195 TDS: Bombay HC
On further appeal, the ITAT set aside the order by relying on its earlier decision in the assessee’s own case and rulings of the Authority for Advance Rulings (AAR) in similar matters involving Dun & Bradstreet entities in Spain, Europe, and the UK. These rulings held that such transactions did not attract Section 195. The Bombay High Court upheld the ITAT’s decision, observing that although AAR rulings are not binding, they pertained to identical transactions and no error was found in them.
The matter reached the Supreme Court through miscellaneous applications seeking recall of its earlier order. The Court condoned the delay but found no reason to recall its order dated 13.01.2026. Consequently, the applications were dismissed, and the High Court’s decision remained undisturbed. The outcome confirms that no TDS obligation arises on such cross-border payments in the given facts.
