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2010 (10) TMI 611 - AT - Income TaxDTAA - Reopening - Income escaping assessment - Royalty or fees for Technical Services - it is well settled that the decision of Hon'ble Supreme Court is considered as a law of the land and it is binding upon all the Courts exercising jurisdiction within India - At the stage of issuing of notice u/s. 148 of the Act, the only issue is whether there was relevant material on which a reasonable person could have formed a requisite belief - It is well settled that the finding or view taken in any subsequent assessment year by the AO is relevant material on which a reasonable could have form a requisite belief required u/s. 147 of the Act - In the case of ACIT vs. Rajesh Jhavert Stock Brokers Pvt Ltd (2007 (5) TMI 197 - SUPREME Court) - the assessee has shown the receipts as business income as against the AO’s finding that receipts are assessable as fees for technical services to be taxed u/s. 44D - Held that: the notice issued by the AO u/s. 148 of the Act is valid and is within his jurisdiction - Appeal is rejected There is no dispute that these consultancy services are non technical in nature inasmuch as these services are, as noted in the assessment order itself, are in the nature of strategy and business consulting which are intended to improve the performance of its clients by focusing on fundamentals of business - the nature of services rendered by the assessee do not fit into the description of fees for technical services' under the provisions of the India Singapore tax treaty - It is well settled in law that when two views are possible, and one of these views is in favour of the assessee, the ambiguity is to be resolved in favour of the assessee - The assessee is hereby directed to produce all necessarily details as to the claim of set off of brought forward unabsorbed depreciation as per law Regarding interest u/s 234B - The AO shall apply the provisions of Section 234B to the facts of the present case and shall decide the matter accordingly after giving an opportunity of being" heard to the assessee - Appeals are disposed of
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