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2022 (8) TMI 1263 - AT - Income TaxIncome accrued in India - payment received for IT support services as Fee for Technical Services - India-Netherlands DTAA - whether the payment received by the assessee for Information Technology (“IT”) support services constitutes Fee for Technical Services / Royalty under the provisions of the Act as well as under Article–12 of the India–Netherlands Double Taxation Avoidance Agreement (DTAA)? - HELD THAT:- Departmental Representative could not show us any reason to deviate from the aforesaid order and no change in facts and in law was alleged in the relevant assessment year. The issue arising in present appeal is recurring in nature and has been decided in favour of the assessee by decisions of Co-ordinate Bench of the Tribunal for preceding assessment years. Thus, respectfully following the order passed by Co–ordinate Bench of the Tribunal in assessee’s own case [2020 (3) TMI 1417 - ITAT MUMBAI] which has also followed the judicial precedents in assessee’s own case, the impugned addition made by treating payment received for IT support services as Fee for Technical Services under the provisions of the Act and under Article–12 of the DTAA, is deleted. As a result, grounds raised in assessee’s appeal are allowed. Royalty receipts - Payment towards IT support services could not fall under “royalty” in the instant case. Thus, the Assessing Officer is directed to follow the directions issued by the learned DRP under section 144C(5) of the Act. As a result, grounds raised in assessee’s appeal are allowed.
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