Case Law Details
Convergys Customer Management Group Inc. Vs ADIT (ITAT Delhi)
The assessee made payment for link charges to telecom service providers in the USA and cross-charged the portion of the cost incurred by it in connection with the India half link to CIS, which was accordingly reimbursed by CIS to assessee. The assessee has merely procured a service and provided the same to CIS; no part of equipment was leased out to CIS. Even otherwise, the payment is in the nature of reimbursement of expenses and, accordingly, not taxable in the hands of the assessee. Therefore, the said payments do not constitute royalty under the provisions of article 12 of the Tax Treaty.
FULL TEXT OF THE ITAT JUDGEMENT
These four cross appeals filed by the assessee and Revenue, arise out of a consolidated order dated 28.01.2014 passed by the Ld. CIT(A)XXIX, Delhi, whereby the appeals of the assessee challenging the assessment orders u/s. 143(3)/147 for A.Y. 2002-03 and 143(3)/144C for A.Y. 2009-10 were partly allowed.
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