Payment received as transportation fees cannot be charged to tax either under sec 9(1)(i) 0r sec 9(1)(vii)

Last updated: 01 March 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Transportation fee being erroneously treated as fees for technical services under Section 9(1)(vii) of the Income-tax Act, 1961. On the facts and circumstances of the case and in law, the Commissioner of Income-tax (Appeals)-11 has erred in upholding the action of the Assessing Officer in treating the transportation fee receivable by the Appellant from Menlo Worldwide Forwarding India Private Limited is taxable in India as fees for technical services under Section 9(1)(vii) of the Income-tax Act, 1961 on the contention that the services provided by the Appellant are in the nature of managerial, technical or consultancy services. The Appellant prays that the transportation fee receivable by it is not in the nature of fees for technical, managerial or consultancy services under Section 9(1)(vii) of the Act and therefore such fees are not liable to tax in India and the entire addition of ‘2,32,89,208 should be deleted.”

Citation :
M/s.UPS SCS (Asia) Limited C/o.BSR & Co., 2nd Floor, Lodha Excellus Apollo Mills Compound, N.M.Joshi Marg Mahalaxmi, Mumbai – 400 011.PAN: AAACU8509M.(Appellant)Vs.The Asstt.Director of Income-tax (International Taxation) 2 (2)Mumbai.(Respondent)