The Commissioner Of Income Tax v. M/S. Teracom Ltd

IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NO. 55 OF 2014 THE COMMISSIONER OF INCOME TAX VersusM/S. TERACOM LTD., ... Appellant ... Respondent Ms. Asha A. Desai, Advocate for the Appellant. Shri S.R. Rivankar, Advocate for the Respondent. -Coram:B. P. DHARMADHIKARI &A. S. GADKARI, JJ.-Date:29th September, 2014 P.C.: Heard. Perused the judgment delivered by ITAT, Panaji on29/01/2014 and order of CIT(A) from which that appeal arose. 2. ITAT has accepted finding of CIT(A). 3. Facts show that commission was paid to non-resident company as per Consultancy Fee Agreement in Malaysia. The consultantprovided services to assessee company to select the technologyprovider and equipment manufacturer in Malaysia for supply toassessee company. 4. There is a finding of fact recorded that said non-resident nevervisited India for rendering any services nor had it maintained anypermanent establishment in India. Assessee paid commission through banking channel in India. ITAT has also upheld relianceupon judgment delivered by Hon'ble Apex Court in case of GE IndiaTechnology Center Pvt. Ltd. V/s. CIT 327 ITR 456. 5. Effort of learned counsel for Department is to demonstrate that the payment was to be made by assessee after deducting local taxesto said consultant in Malyasia. There is nothing on record to showthat on commission paid to said non-resident any income tax waspayable in India. This finding of ITAT is not shown to be erroneous. 6. In this situation, we do not find any substantial question of lawarising in the appeal. Appeal rejected. NH A. S. GADKARI, J. B. P. DHARMADHIKARI, J.