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2023 (1) TMI 72 - SCH - Income TaxTDS on commission income paid to foreign agents and the non-deduction of TDS - addition u/s 40(a)(ia) r/w. Section 195(1) as demurrage paid to a non-resident buyer of iron ore without deducting TDS - HELD THAT - As issues raised before the High Court 2017 (9) TMI 248 - BOMBAY HIGH COURT were held against the Revenue with respect to the earlier assessment years 2005-2006 2009-2010. The matter has not been carried further by the Revenue. In that view of the matter, no error has been committed by the ITAT and/or even the High Court. Hence, the present Special Leave Petition stands dismissed. Losses due to foreign exchange fluctuation on the export proceeds - SLP against HC 2018 (3) TMI 2003 - DELHI HIGH COURT - HELD THAT - The issue is covered by the decision of this Court in the case of CIT vs. Woodward Governor India (P) Ltd. 2009 (4) TMI 4 - SUPREME COURT Mr. N. Venkatraman, learned ASG, is not in a position to dispute the above. Under the circumstances, it cannot be said that the High Court has committed any error in holding the said issue against the Revenue relying upon the decision in the case of Woodward Governor India (P) Ltd. (supra). Advance of interest-free loans to the related party - As the amount involved is Rs.6,00,000/- only, keeping the question of law, if any, open, we dismiss the present Special Leave Petition(s) qua the said issue. Non-deduction of TDS on account of export commission - It is required to be noted that there are concurrent findings recorded that the foreign entity receiving the amounts were not Indian residents and subject to tax and that the services rendered were rendered outside India, neither the ITAT nor the High Court have committed any error in holding the said issue against the Revenue.
Issues:
1. Dismissal of Tax Appeal by High Court of Bombay at Goa. 2. Assessment years 2005-2006 & 2009-2010. 3. Special Leave Petitions related to assessment years 2009-1010 and 2010-2011. 4. Losses due to foreign exchange fluctuation on export proceeds. 5. Advance of interest-free loans to related party. 6. Non-deduction of TDS on export commission. Issue 1 - Dismissal of Tax Appeal by High Court of Bombay at Goa: The Supreme Court dismissed a Special Leave Petition (SLP) filed by the Revenue against the judgment of the High Court of Bombay at Goa, which had concurred with the decision of the Income Tax Appellate Tribunal (ITAT) in Tax Appeal No. 68 of 2016 for the assessment years 2005-2006 & 2009-2010. The Court found no error in the decisions of the ITAT and the High Court, leading to the dismissal of the SLP. Issue 2 - Assessment years 2005-2006 & 2009-2010: The Supreme Court noted that the issues raised for the assessment years 2005-2006 & 2009-2010 were decided against the Revenue by the High Court and were not pursued further by the Revenue. Consequently, the Court found no error in the decisions of the ITAT and the High Court for these assessment years. Issue 3 - Special Leave Petitions related to assessment years 2009-1010 and 2010-2011: In two Special Leave Petitions related to the assessment years 2009-1010 and 2010-2011, three main questions were raised: losses due to foreign exchange fluctuation on export proceeds, advance of interest-free loans to a related party, and non-deduction of TDS on export commission. Issue 4 - Losses due to foreign exchange fluctuation on export proceeds: The Court referred to the decision in the case of CIT vs. Woodward Governor India (P) Ltd. and found that the issue of losses due to foreign exchange fluctuation on export proceeds was covered by this decision. The Court upheld the High Court's decision based on the precedent, leading to the dismissal of the Special Leave Petition regarding this issue. Issue 5 - Advance of interest-free loans to related party: Regarding the advance of interest-free loans to a related party, the Court noted the small amount involved and kept the question of law open. The Court dismissed the Special Leave Petition concerning this issue. Issue 6 - Non-deduction of TDS on export commission: On the issue of non-deduction of TDS on export commission, the Court observed that the foreign entity receiving the amounts was not subject to tax in India as the services were rendered outside India. Both the ITAT and the High Court were found to have made no error in deciding against the Revenue on this issue, leading to the dismissal of the Special Leave Petitions. In conclusion, the Supreme Court dismissed the Special Leave Petitions related to the assessment years 2009-1010 and 2010-2011, upholding the decisions of the lower courts on various tax-related issues.
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