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2019 (3) TMI 1668 - BOMBAY HIGH COURTAccrual of income - interest income returned by the assessee on cash basis - A.O. has made additions on the ground that interest income was liable to be assessed on accrual basis - DTAA between India and Cyprus - whether the interest income of the Respondent assessee can be taxed on the basis of accrual without receipt thereon or can it be taxed only upon receipt? - HELD THAT:- In M/s Siemens Aktiengesellschaft [2012 (12) TMI 737 - BOMBAY HIGH COURT] held that the assessment of royalty or any fees for technical services should be made in the year in which the amounts are received and not otherwise. Counsel for the Revenue relied upon the Special Bench decision of the Tribunal in the assessee's own case, which in our opinion, has no relevance to the facts of the present case, as it relates to the period prior to the issuance of Notification dated 26th August 1985. In this view of the matter the decision of the Income Tax Appellate Tribunal in holding that the royalty and fees for technical services should be taxed on receipt basis cannot be defaulted. While interpreting similar clause of Indo-German DTAA in relation to taxing royalty or fees for technical services, this Court had confirmed the decision of tribunal holding that such service can be taxed only on receipt
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