2019 (4) TMI 1042

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... as held in the assessment order? ii. Without prejudice to the Ground No.i, whether the services rendered after the execution of contract for services would be covered and taxable as Fees for Technical Services u/s 9(1)(vii) read with explanation below sub­section (2) of section 9 of the I.T. Act, 1961? iii. Whether on the facts and in the circumstances of the case and in Law, the ITAT was justified in deleting the disallowance u/s 40(a)(ia) of the I T Act, 1961?" 2. These issues arise in the following background. Respondent is sole proprietor of one M/s Radiant Services. Said Radiant Services had entered into an agreement with one M/s Arabi Enertech of Kuwait based company on 2007­08 for providing manpower to the said company .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... atter in appeal before the Tribunal. Tribunal confirmed the view of the CIT (Appeals) upon which the present appeal has been filed. 5. Having heard learned counsel for the parties and having perused documents on record, we do not find any error in the view of the CIT (Appeals) and the Tribunal. The contract between the assessee and the Kuwait based company was sufficiently clear giving all indications that the concerned person was the employee of the assessee. The preamble to this contract itself provided that as per the contract the assessee would supply Commissioning Engineer to the said company on deputation basis for its on going project. Such deputation would be on the terms and conditions mutually discussed between the assessee and t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ch circumstances, the mere test of on­spot control or supervision in order to decide the correct employer may not succeed. It is inevitable that in a case as the present one, the Kuwait based company would enjoy considerable supervising powers and control over the employee as along as the employee is working for it. Neverthless, the assessee­company continued to enjoy the employer­emplyee relationship with the said person. For example, if the work of such person was found to be wanting or if there was any complaint against him, as per the agreement, it would only be the assessee who could terminate the service. 7. Under the circumstances, no question of law arises. Income Tax Appeal is dismissed.
Case laws, Decisions, Judge .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X