2018 (5) TMI 2033

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..... a) of the Act back to the tribunal. 2. The brief facts of the case shows that the assessee has paid Rs. 1471095/- to M/s. CSA International ISA for the purpose of obtaining witness testing of ACT contractor as part of CB report and KEMA certification. The ld AO disallowed the above sum applying the provision of section 40(a)(ia) of the Act. The matter reached up to the level of coordinate bench which deleted the above addition by holding that technical services are utilized for the purpose of making or earning any income from a source outside India and therefore, payment was not covered by the second exception to section 9(1)(vii)(b) of the Act and therefore, disallowance u/s 40(a)(ia) cannot be made. The Hon'ble Delhi High Court held .....

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..... to sell its products freely within the European Union. Assessee company is exporting its products outside India and the certificate from KEMA through CSA is required to enable the company to export these products. Such certification is not required by the buyers in India but buyers outside India. The assessee has submitted the copies of the invoices. We have also perused along with those invoices the certificate of compliance issued by that party i.e. CSA International. After the certification the products listed which are certified are eligible to bear the CSA Mark along with the indicators. The KEMA Certification allows the products of the assessee to be freely traded within European Union. When this certification is annexed to the produc .....

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..... e 12(4), it is stated that generally speaking technology will be considered "made available' when the person acquiring the service is enabled to apply the technology. The fact that the provision of the services may required technical input by the person providing those services does not per se mean that the technology or technical knowledge etc are "made available‟ to the persons purchasing that services. The identical issue has been considered by the coordinate bench in 2-SOT-249 in NQA Quality Systems Registrar Ltd Vs. DCIT where the UK company was authorized to issue ISO Certification and it was held that such services does not result in "making available‟ those services to the recipient. The revenue could not show that h .....

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