Itta/612/2013 Of Director Of Income Tax (International Taxation) v. M/S Nisso Iwai Corporation Japan

THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.612 of 2013 DATED:4.2.2014 Between:The Director of Income Tax (International Taxation),Bengaluru. … Appellant And Income Tax Officer, Ward 16(2),Hyderabad. ….Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA ANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.612 of 2013 Judgment:(per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred against the judgmentand order of the learned Tribunal dated 22.6.2010 and issought to be admitted on the following substantial questions oflaw: 1.In the facts and circumstances of the case, whether thefinding of the Hon’ble Tribunal that the amounts receivedby the respondent asssessee for supply of design andengineering drawings do not come within the definition of‘fee for technical services’ in terms of Section 9(1)(vii) ofIncome Tax Act is not erroneous and contrary to law andliable to be set aside ? 2.Whether the finding of the Hon’ble Tribunal that the feefor design and engineering drawings received by theRespondent assessee is not liable for tax in India, is notvitiated in law as the Hon’ble Tribunal failed to considerand appreciate the material facts and reasons on record ? We have heard Mr. B. Narasimha Sarma, learned counselfor the appellant and have gone through the judgment andorder of the learned Tribunal. It appears, the learned Tribunal, on fact, found that there has been no accrual of income in India and this accrual ofincome has taken place in Japan. As such, the Income Tax Actcannot be made applicable. We feel that the decision is legallycorrect and we do not find any element of law to be decided inthis appeal. The appeal is accordingly dismissed. __________________ K.J. SENGUPTA, CJ _________________ SANJAY KUMAR, J 4.2.2014 PNB