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2010 (9) TMI 511 - AT - Income TaxDTAA - Fees for technical services - According to the Assessee, the fees received by the assessee company for rendering technical services in India is not taxable - The assessee does not have a PE in India and hence the amount received by it will be taxable in UAE as per Article 22 - It is thus clear that a tax treaty not only prevents ‘current’ but also ‘potential’ double taxation - The plea taken by the revenue that the assessee was not ‘liabile to tax’, which was anyway not taken by the Assessing Officer or before the CIT(A), is also not sustainable in law either - Mumbai Bench of the Tribunal in the case of Assistant Director of Income-tax (International Taxation), Range 1(2) vs. Green Emirate Shipping & Travels - As held in the aforesaid case, expression ‘liable to tax’ in the contracting state as used in Article 4(1) of Indo-UAE-DTAA does not necessarily imply that the person should actually be liable to tax in that contracting state and that it is enough if other contracting state has right to tax such person, whether or not such a right is exercised - Appeal is dismissed
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