Section 9(1)(vii) "source of income": Delhi High Court Dissents From Madras HC

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From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Tue, May 29, 2012 at 9:48 AM
Subject: Message from EGroup of SolapurCAs S. 9(1)(vii) "source of income": Delhi High Court Dissents From Madras HC
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

CIT vs. Havells India Ltd (Delhi High Court)

S. 9(1)(vii)(b): Export sales is not a "source of income outside India". Expenditure on fully convertible debentures is deductible

 

The assessee, an Indian company, paid Rs. 14.71 lakhs to a US company for 'KEMA' certification which was necessary to enable it to sell its products in the European markets. The assessee claimed that though the said amount was 'fees for technical services' u/s 9(1)(vii), it was paid "for the purpose of earning income from a source outside India" (i.e. the exports) and so it was not taxable in India u/s 9(1)(vii)(b). The AO & CIT (A) rejected the claim though the Tribunal upheld it. On appeal by the department, HELD reversing the Tribunal:

(Click Here To Read More)

Regards,

Editor,

itatonline.org

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