DCIT Vs CPP Assistance Services Private Limited (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT), Delhi, dismissed two appeals filed by the Revenue against the orders of the National Faceless Appeal Centre (NFAC) in the case of DCIT vs. CPP Assistance Services Private Limited. The case involved tax assessment orders for the financial years 2017-18 and 2019-20 under Section 143(3) read with Section 144B of the Income Tax Act, 1961. The primary issue revolved around payments made by the assessee to its non-resident group company in the UK, which the Revenue contended should be taxed as fees for technical services under Article 13 of the India-UK Double Taxation Avoidance Agreement (DTAA).
The Tribunal noted that the issue had been previously examined in the assessee’s own case for the assessment year 2017-18 by a coordinate bench. In that instance, the bench ruled that the payments in question did not meet the “make available” criterion under the India-UK DTAA. Specifically, it was observed that the services rendered by the UK-based CPP Group involved IT support that did not transfer any technical knowledge, experience, or skill to the assessee. This conclusion was based on the nature of the agreement, which showed no evidence that the technical know-how or expertise was imparted to the Indian entity.
