« From the Courts » Open DEMAT Account in 24 hrs  Karnataka High Court restrains Bengaluru-based Institute of Chartered Tax Practitioners India from enrolling candidates for its courses  Attachment on Cash Credit of Assessee under GST Act: Delhi HC directs Bank to Comply Instructions to Vacate  Income Tax Addition Made Towards Unsubstantiated Share Capital Is Eligible For Section 80-IC Deduction: Delhi High Court  Inordinate delay in income tax appeal hearings  Income Tax leviable on Tuition Fee in the Year of Rendering of Services: ITAT  Supreme Court invoked its power under Article 142 of Constitution to validate notices issued under section 148 as notices issued under section 148A. However the same shall be subject to amended provisions of section 149.  ITAT refuses to stay tax demand on former owner of Raw Pressery brand  Bombay HC sets aside rejection of refund claims by GST authorities  [Income Tax Act] Faceless Assessment Scheme does not take away right to personal hearing: Delhi High Court  Rajasthan High Court directs GST Authority to Unblock Input Tax Credit availed in Electronic Credit Ledger  Sebi-taxman fight over service tax dues reaches Supreme Court «  Rs 35 crore study to find effect of backlog on judges’ minds... Girnar Investment Ltd vs. CIT (Delhi High Court)... » DIT vs. Rio Tinto Technical Services (Delhi High Court) January, 09th 2012 Even if not assessable as fees for technical services under DTAA, bar in s. 44D against deduction of expenses will apply   The assessee, an Australian company, set up a permanent establishment (PE) in India to render technical services for evaluation of coal deposits and conducting feasibility studies for transportation of iron ore. The AO & CIT (A) held that the payments received by the assessee were taxable as fee for technical services u/s 9(1)(vii) read with s. 115A on a gross basis without any deduction in view of s. 44D at the rate of 20%. On appeal, the Tribunal (39 DTR 327 (Del)) held that as the assessee had a PE in India, the receipts were chargeable to tax as business profits after deduction of expenses under Article 7 of the DTAA and s. 44D & 115A did not apply. On appeal by the department, HELD partly reversing the Tribunal:   (i) As the assessee had a PE in India from which the income arose, the income was chargeable to tax as business profits under Article 7 of the DTAA and not as fees for technical services under Article 12;   (ii) Article 7(3) permits a deduction of expenditure in accordance with and subject to limitations of the law relating to tax in India including executive and general administrative expenses so incurred regardless whether they have incurred in India or elsewhere. The words in accordance with and subject to limitation of the law relating to tax applies not only to the executive and general administrative expenses but to all expenditure;   (iii) The income received by the assessee, though not assessable as fees for technical services under the DTAA, is fees for technical services under Explanation 2 to s. 9(1)(vii) because it is for providing technical information and does not arise from a project. Consequently, s. 44D, which provides that no deduction shall be admissible while computing income of the nature of fees for technical services shall apply.