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2024 (4) TMI 388 - AT - Income TaxIncome deemed to accrue or arise in India - taxation of entire revenue received by the Appellant from provision of legal services on Indian engagements - ‘Fees for Technical Services’ under the provisions of section 9(1)(vii) of the Act for the subject assessment year - entitlment to benefit of Article 4(1) of India-UK DTAA - assessee, a Non-Resident LLP, is a firm of Solicitors registered in UK and is engaged in providing legal services to its clients worldwide - HELD THAT:- The order of the ITAT has been reported as (2022 (10) TMI 903 - ITAT DELHI] wherein it is held that the assessee LLP, tax resident of UK provided legal services to its clients worldwide. It was entitled to benefit of Article 4(1) of India-UK DTAA on portion of its income from Indian engagements which had been taxed in UK in hands of its UK tax resident partner. Eligibility of a fiscally transparent partnership firm to avail of the tax treaty benefits is affirmed on the basis that the income of the partnership firm has been taxed in the foreign state in the hands of its partners. Thus benefit of Article 4.1 is to be granted to the assessee in identical facts and circumstances of the case. Accordingly, we set aside the orders of the authorities below and decide the issue in favour of the assessee.
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