Referral Fee Reimbursement Not FTS – Following Earlier Years Orders, Additions Deleted – Revenue Appeal Dismissed – ITAT Mumbai

DCIT Vs HSBC Bank PLC (ITAT Mumbai) Revenue challenged deletion of additions made on referral fee of ₹3.77 Cr and reimbursements of ₹1.80 Cr & ₹12.73 Cr received by HSBC Bank PLC, UK, which AO had taxed as Fees for Technical Services (FTS). Tribunal noted that identical issues in assessee’s own case for earlier years were already decided in favour of assessee. Referral fee received for introducing global clients to group entities was held to be purely commercial in nature without any managerial, technical or consultancy element and hence not taxable as FTS under s.9(1)(vii) or unde...