Case Law Details
HP Services [Singapore] PTE Ltd Vs DCIT (ITAT Delhi)
Conclusion: Receipts from providing information technology related support services could not be considered as royalty and/fees for technical services as while running the services, assessee had not made available any technical knowledge, experience, skill in terms of Article 12(4)(b) of the DTAA and as such, receipts in question were not FTS liable to tax in India.
Held: In the present case, AO treated receipts from providing information technology related support services considered as royalty and/fees for technical services. The underlying facts in this issue was that India Singapore DTAA required that services should be such that enable the person acquiring the services to apply the technology contained therein. The claim of the assessee was that the services did not result in transmitting technical, therefore, the claim of assessee was rejected by AO/ DRP. It was held that under identical situation, Tribunal in the case of Planetcast International Pte Ltd 152 com 422 had held that while running the services, assessee had not made available any technical knowledge, experience, skill in terms of Article 12(4)(b) of the DTAA and as such, receipts in question were not FTS liable to tax in India. Applying the same ratio, payments received from Mphasis Ltd were not covered by Article 12(4) of the India Singapore DTAA. This addition was, accordingly, directed to be deleted.
FULL TEXT OF THE ORDER OF ITAT DELHI
The above captioned four separate appeals by the assessee are preferred against 4 separate orders framed u/s 143(3) r.w.s 144C of the Income-tax Act, 1961 [the Act, for short] pertaining to Assessment Years 2011-12 to 2014-15.
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