Case Law Details
D&H Secheron Electrodes Pvt. Ltd. Vs ITO (ITAT Indore)
The issue under consideration is whether the Payment towards placement services is covered under technical service and TDS u/s 195 is applicable on the same?
ITAT states that the services taken by the assessee company from M/s Korea Search do not fall under the category of technical services and it is merely fee paid for placement services which by no canon require any technical expertise. Therefore since the services in question provided by M/s. Korea Search to the assessee company do not fall in the category of fees for technical services as provided under Section 9(1)(vii) of the Act there was no liability of the assessee to deduct tax at source u/s 195 of the Act. ITAT therefore set aside the order of both the lower authorities and direct the Revenue authorities to delete the demand raised for default of deduction of tax at source.
FULL TEXT OF THE ITAT JUDGEMENT
The above captioned appeal filed at the instance of the assessee pertaining to Assessment Year 2016-17 is directed against the orders of Ld. Commissioner of Income Tax (Appeals)-3 (in short ‘Ld.CIT(A)’], Ahmedabad dated 17.01.2018 which is arising out of the order u/s 250 of the Income Tax Act 1961(In short the ‘Act’) dated 20.01.2016 framed by ITO (IT & TP), Bhopal
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