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2014 (11) TMI 404 - AT - Income TaxFees for technical services – Indo-US DTAA - payment made to Netherlands Company M/s. NDDO Oncology BV for conducting pre-clinical research studies - Whether the payments are to be treated as fees for technical services under Article 12 of the DTAA or as business profits in terms of Article 7 of DTAA with USA and considered in those cases that the payments are in the nature of business receipts to be considered under Article 7 of the DTAA – Held that:- as rightly pointed out by the Ld. CIT(A), the DTAA between USA and India, Canada and India are entirely different with DTAAs of UK and Netherlands. These issues were clearly analysed by Ld. CIT(A) in the order. Assessee company is also silent on the enquiry made by Ld. CIT(A) with reference to transfer of knowledge as detailed in paras 26 and 28 of the order. Nothing was brought on record by assessee to counter the findings of Ld. CIT(A) and simply relied on the Coordinate Bench decision in the case of Dr. Reddy Laboratories [2013 (11) TMI 304 - ITAT HYDERABAD], which we notice that the facts are different. The payments made are taxable as fee for technical services. Since assessee has not deducted tax on the said payments, AO is correct in raising the demands u/s 201 and 201(1A). - Decided against assessee.
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