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2017 (11) TMI 1912 - AT - Income TaxTaxability of “Management Service Fees” - Assessing Management service fee received by the assessee as Royalty - eligibility for benefits of Indo-Netherland DTAA - assessee claimed the same as managerial services, as it did not make available any technical knowledge, experience, skill, know-how or process - HELD THAT:- We notice that the assessing officer had made identical disallowance in assessment year 2009-10 [2016 (11) TMI 1249 - ITAT MUMBAI] and the Tribunal, vide its order has held that none of the services provided by the assessee in the terms of “service agreement” falls under the scope and ambit of “royalty” as defined in Article 12(4) of the DTAA. In the years under consideration also, the assessee received payments pursuant to very same agreement. The Ld A.R submitted that there is no change in facts between both the years. Before us, the revenue could not bring any material in order to compel us not to follow the order passed by the co-ordinate bench in AY 2009- 10. Since a particular view has already been taken by the Tribunal on identical payments received by the assessee, following the same, we hold that the payments received by the assessee in terms of “service agreement dated 01-04- 2004” do not fall under the definition of “royalty” as defined in Article 12(4) of India-Netherlands DTAA. Accordingly we set aside the order passed by the assessing officer in both the years on this issue. - Decided in favour of assessee.
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