Case Law Details
Cameron (Singapore) Pte Ltd. Vs ACIT (ITAT Delhi)
The article discusses the recent order from ITAT Delhi in the case of Cameron (Singapore) Pte Ltd. vs ACIT, addressing the assessment year 2016-17. The focus is on the contention that management support fees should not be treated as Fees for Technical Services (FTS) under Section 9(1)(vii) of the Income Tax Act, 1961, and Article 12(4) of the India-Singapore Double Taxation Avoidance Agreement (DTAA).
Detailed Analysis:
The appeal raised several substantive grounds, primarily challenging the AO’s decision regarding the nature of fees for management support services provided to Cameron Manufacturing (India) Private Limited (CMIPL). The key arguments revolved around the interpretation of FTS under the India-Singapore DTAA.
The appellant contended that similar issues had been decided in their favor by the Tribunal for the assessment years 2013-14 to 2015-16. The order highlighted that the receipts from Cameron Manufacturing India Pvt. Ltd. were not in the nature of FTS. The Tribunal emphasized that the services provided were managerial and consultancy in nature, but the crucial condition of making available technical knowledge, skill, or know-how was not met.
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