Dismissing Revenue’s Appeal Against Avnet Asia Pte Ltd for ITA 1284/DEL/2022

Dismissing Revenue’s Appeal Against Avnet Asia Pte Ltd for ITA 1284/DEL/2022

Summary of Judgement

The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘D’ provided a significant judgment in ITA Nos. 1282, 1285, 1287 & 1284/Del/2022, pertaining to the assessment years 2013-14, 2014-15, 2015-16, and 2017-18. The appeals were filed by the Assistant Commissioner of Income Tax (ACIT), Circle 1(1)(1), International Taxation, New Delhi against Avnet Asia Pte Ltd., a non-resident corporate entity tax resident in Singapore. The primary issues revolved around the taxability of receipts from the sale of software as royalty and the characterization of service charges as Fees for Technical Services (FTS) under section 9(1)(vii) of the Income Tax Act, 1961, and under the India-Singapore Double Taxation Avoidance Agreement (DTAA). After thorough deliberation, the ITAT dismissed the appeals filed by the Revenue, siding with the assessee, Avnet Asia Pte Ltd.

The judgment elucidated that Avnet Asia Pte Ltd., engaged in …

Dismissing Revenue’s Appeal Against Avnet Asia Pte Ltd for ITA 1284/DEL/2022