Case Law Details
Aluminium Pechiney Vs DCIT (ITAT Delhi)
ITAT Delhi held that amount received towards service rendered by the assessee is in connection with installation/erection of plant and machinery involved in mining of natural resources fall within the exceptions provided under Article 12(5)(f) and 12(5)(g) of India – Portugal DTAA and hence not taxable.
Facts- The assessee is a non-resident corporate entity incorporated in France and a tax resident of that country. Assessee owns certain right, know-how, designs, and processes required to design, build and implement integrated aluminium production plants. The assessee is also a leader in primary metals and their by-products and also provides a variety of technical and related services that include quality control, the design of machines, equipment and production processes, supervision and advice on industrial installations, along with their commissioning and operations, mainly in the field of aluminium and associated installations.
Notably, the assessee claimed the income declared to be in the nature of Royalty/Fee for Technical Services (FTS) under Article 13 of India – France Double Taxation Avoidance Agreement (DTAA). In course of assessment proceeding, the assessee came up with fresh claim that the income declared in the return of income is not taxable in India. However, the AO completed the assessment u/s. 143(3) of the Act disallowing the claim of the assessee.
Commissioner (A) granted partial relief. Being aggrieved, the present appeal is filed.
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