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2011 (1) TMI 911 - AT - Income TaxFee for technical services - DTAA between India and Singapore - Payments made under section 40(a)(ia) to Final Touch Grafix,Singapore - The nature of services rendered by FTG being public relations activities, liaison, co-ordination and also design of advertising material like power-point presentation materials, leaf-lets etc., we are of the considered view that they did not represent of rendering any managerial, technical or consultancy services as advocated by the Assessing Officers in their impugned orders - Further, the Assessing Officers have not brought any clinching evidence before us to substantiate their conclusions that the services rendered by FTG to the assessee for promoting their businesses which were covered under the managerial services as defined as FTS in the Act - Since, the Assessing Officer have not established with any discreet proof that technical skill or expertise made available to the assessee were in the nature of managerial services, we are declined to agree with the Assessing Officers perceptions, but, fully in agreement with the ld. CIT(A)'s finding - Decided in favour of assessee. Payments made under section 40(a)(ia) to Filtrex International Pte. Ltd., Singapore - With regard to FIPL also, find that the ld. CIT(A) had analyzed the issue in a well judged manner and found fault with the Assessing Officers in the sense that when the Assessing Officers have held that the services made available by FIPL were for promoting their businesses and, thus, fell within the ambit of 'managerial services' as defined in the Income-tax Act, but, they have miserably failed to come up with any clinching proof to strengthen their half-baked conclusions - Thus, the revenue had failed to nail the assessee with any corroborative evidence that the services rendered actually were within the sphere of either managerial or consultancy services - Decided in favour of assessee.
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