N.M. Rothschild & Sons Limited Vs DCIT (ITAT Delhi)
ITAT Delhi held that services rendered under Intra Group Service Agreement do not make available technical knowledge and hence would not fall within the definition of FTS as provided under Article 13(4) of India UK DTAA and hence not taxable in India.
Facts- Vide the present appeal, the assessee submits that the Assessing Officer erred in making an addition of Rs.2,47,83,056/- earned for services rendered under group service agreement and Rs.4,34,67,740/- towards fee for advisory services (aggregating to Rs.6,82,50,796/-) by treating it as Fees for Technical Services (FTS) under Article 13 of the India UK DTAA without appreciating the fact that the services rendered by the assessee do not make available technical knowledge to the recipient of services and hence not taxable in India.
Conclusion- The Tribunal in assesses own case for the assessment years 2018-19 and 2019-20 and ITA 1382/Del/2022 by order dated 30.06.2023 held that the fee received towards services rendered under group service agreement would not fall within the definition of FTS as provided under Article 13(4) of India UK DTAA.
Held that the factual matrix of the case is same and identical for the AY 2018-19 the DRP followed its directions and findings given for the AY 2018-19 even for the AY 2020-21 which is under consideration. Therefore, facts being identical respectfully following the order of the Tribunal for the assessment years 2018-19 and 2019-20 we hold that the receipts towards services rendered under Intra Group Service Agreement would not fall within the definition of FTS as provided under Article 13(4) of India UK DTAA and hence not taxable at the hands of the assessee in India.
