Section 9(1)(vii) FTS Addition Set Aside; Taxability Must Be Examined Under Relevant DTAA: ITAT Delhi

Herbert Smith Freehills LLP Vs CIT (ITAT Delhi) The appeals concerned the taxability of income earned by a UK-based partnership firm providing legal services in relation to Indian engagements for Assessment Years (AYs) 2015-16, 2018-19 and 2021-22. Since identical issues arose in all three appeals, the Tribunal treated AY 2015-16 as the lead case and applied its findings to the remaining years. The assessee was a firm of solicitors registered in the United Kingdom, engaged in providing legal services worldwide. The firm was a fiscally transparent entity under UK tax law, with its income distri...