In a major relief to M/s AD2PRO Media Solutions PVT Ltd, the Supreme Court of India dismissed the special leave petition (SLP) filed by the Income Tax Department.
The SLP arouse out of impugned final judgment and order dated 24-02-2023 in ITA No. 238/2020 passed by the High Court of Karnataka at Bengaluru.
The ITAT allowed assessee’s appeal by holding that the payments made cannot be considered as royalty or fees and hence, no TDS was required to be deducted. Feeling aggrieved,
The Karnataka High Court observed that “In the case on hand, the services have been rendered in USA. In contradistinction in the case of GVK Industries Limited, the advice of a Company called NRC was taken by GVK Industries for financial structure and with its advice GVK Industries had approached Indian Financial Institutions with IDB1 Bank acting as lead financier for its Rupee loan requirement and for a part of its foreign currency.”
The High Court further observed that the services were utilized in USA, we are persuaded to u in our considered opinion, the findings returned by the ITAT do not call for any interference.
A Two-Judge Bench comprising Justice BV Nagarathna and Justice Ujjal Bhuyan observed that “Delay in filing the special leave petitions is condoned. We are not inclined to interfere in the matter. Following the order dated 10.11.2023 in SLP (C) Diary No.43014/2023, this special leave petition is also dismissed.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
