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2023 (6) TMI 1124 - ITAT DELHIIncome deemed to accrue or arise in India - amount received by the assessee towards provision of Management Support Services to be in the nature of Fees for Technical Services [FTS] under Article 12 of the India – Singapore DTAA - whether services provided by the assessee do not make available any technical knowledge, skill, know-how to the recipient ? HELD THAT:- As in A.Ys 2013-14 and 2014-15 [2023 (3) TMI 1187 - ITAT DELHI], with respect to taxability of Management Support cost, under Article 12(4)(b) of the DTAA held as facts show that the agreements for user of brand name and for Management Support Services are independent of each other, hence, not connected or dependent upon each other. It is also relevant to observe, while the license agreements for user of brand name are with various third party hotels in India, the agreement for provision of Management Support Services is with the Indian subsidiary. Therefore, it cannot be said that the amount received from provision of Management Support Services is ancillary and subsidiary to the license agreement. A threadbare analysis of Management Support Services Agreement and the fee received under various heads in pursuance to such agreement, in assessee’s own case in assessment year 2012-13 [2021 (10) TMI 443 - ITAT DELHI] has given a categorical finding that it does not come under Article 12(4) of India-Singapore DTAA. The decision of the Co-ordinate Bench as aforesaid, will also apply mutatis-mutandis to this appeal. Thus we direct the Assessing Officer to delete the impugned addition. Short credit of TDS - The assessee is entitled for credit of TDS as per provisions of section 199 of the Act r.w.r 37BA(2) of the Rules. We, therefore, direct the Assessing Officer to grant credit of TDS as per relevant provisions of the law and rules.
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