Processing Fee is Interest, Not FTS – ITAT Delhi Follows Earlier Year decision

AKA Ausfuhrkredit-Gesellschaft MBH Vs DCIT (ITAT Delhi) Assessee, a German financial institution, received ₹87.34 lakh from Filatex India Ltd. as management/processing fee in connection with a loan guaranteed by Harmes Deckung Germany under a tied buyers’ credit scheme. AO treated this as Fees for Technical Services (FTS) u/s 9(1)(vii) & Article 12(4) of the India–Germany DTAA, taxable @10%, & DRP confirmed the addition relying on earlier departmental stance. Before ITAT, Assessee argued that identical payment for A.Y. 2016-17 was already held by ITAT to be interest under Section...