Log In

| Recover password


The Kolkata bench of ITAT in [2023] 32 ITR (Trib)-OL 533 (ITAT[Kolk]) held that the income earned from testing services is taxable in India because the result of testing was used by customers in India no matter that the testing is performed  outside india. 


On the other hand the Jaipur bench in (2019] 75 ITR (Trib) 13 (ITAT[Jai]) held that there was no liability to deduct tax at source under section 195(1) on the testing charges which have been paid for testing services outside of India and fall outside the scope of total income unless they are linked to any PE in India. 


This kind of dispensation by benches is both unbusinesslike and unbecoming. The Kolkata bench rendered adverse view on the basis of their previous adverse decision in the case of assessee without taking into account favourable Jaipur bench view hence both unfair to the taxpayer and also disrepute the clear feathers of legal jurisprudence. 


This case is desirable to be reappraised by the President of the ITAT by setting up a special bench. 


CA Gopal Nathani 


Leave a Reply

Your email address will not be published.

error: Do not copy the content of this website.