TMI Blog2023 (6) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be in the nature of Fees for Technical Services [FTS] under Article 12 of the India Singapore DTAA. 4. At the very outset, the ld. counsel for the assessee stated that the impugned quarrel has been decided by this Tribunal in favour of the assessee and against the Revenue in earlier assessment years. The ld. counsel for the assessee supplied copies of the orders of the coordinate benches. 5. Though the ld. DR strongly supported the findings of the lower authorities, but could not bring any distinguishing decision in favour of the Revenue. 6. We have carefully considered the orders of the authorities below and have the benefit of the decision of the co-ordinate benches. We find force in the contention of the ld. counsel for the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is providing services in the nature of operational support, accounting and legal support, and information technology support related services, etc. The said amounts were claimed as exempt in the return of income filed in respective years, as the same was not in the nature of FTS under DTAA. The Assessing Officer, however, added the management services cost to the income of the assessee in the assessment orders passed u/s 143(3) of the Act dated 13 February 2019 (for AY 2015-16) and order dated 25 February 2019 (for AY 2016-17), treating the same as FTS. The Assessing Officer alleged that the services provided by IHG AP to IHG India, resulted into satisfaction of make-available condition, provided under Article 12(4)(b) of the DTAA. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he services made available so that the recipient can use or replicate such service received from the assessee.... 32. Similarly, the services rendered in connection with training recruitment and manpower specification, we find that there is neither technology transfer, knowledge transfer nor transfer of any skill or know-how. 33. Hence, we hold that the provisions of the Article 12(4) could not be applied to the services rendered by the assessee in the strict sense of the provisions of DTAA. Hence, we hold that the decision of CIT(A) cannot be supported. 14. The co-ordinate bench categorically held that the services provided by the assessee do not make available any technical knowledge, skill, know-how to the recipient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and subsidiary to the license agreement. It is further relevant to observe, in the year under consideration, the assessee had received more income from provision of Management Support Services than royalty. In that sense also, Management Support Services cannot be considered to be ancillary and subsidiary to the license agreement. 17. After threadbare analysis of Management Support Services Agreement and the fee received under various heads in pursuance to such agreement, the Co-ordinate Bench in assessee s own case in assessment year 2012-13(supra) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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