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2012 (6) TMI 476 - AT - Income TaxReimbursement of expenses - Article 7 read with Article 5 of Indo-UK DTAA – Held that:- it is an undisputed position that the payment for technical services, which is sought to be brought to tax in the hands of the assessee, is in the nature of reimbursement of technical expenses to the head office. - fee for provision of marketing and management services rendered outside India not subjected to tax in India holding that the same constituted business profit not attributable to PE in India. - Decided in favor of assessee. Reimbursement of lease line charges - held that:- reimbursement of lease line charges received by the assessee from WNS India was not chargeable to tax in India. - Decided in favor of assessee. Whether reimbursement of expenses taxable as fees for technical services under 13 of the Indo-UK tax treaty - assessee-company had incurred various expenses on the employees of WNS India on their visits abroad - amount in question was received by the assessee on account of reimbursement of expenses actually incurred by it on behalf of WNS India – Held that:- exact nature of expenses and services was not ascertainable in the absence of relevant details filed by the assessee. it is necessary to ascertain the exact nature of expenses incurred by the assessee and services rendered, for which the amount in question is claimed to be received as reimbursement in order to decide the issue relating to its taxability in India. Matter remanded to Assessing Officer. assessee's appeal allowed for statistical purposes DTAA between India and UK - article 7 of the India UK treaty - income deemed to accrue or arisen in India - assessee-company took over the assets, liabilities and business of M/s Town and Country Assistances Ltd. including the BPO contracts – Held that:- transfer or assignment of the said contracts not being the capital assets situated in India did not give rise to any income which was deemed to accrue or arisen in India. assessee-company had a service PE in India as a result of marketing and management services rendered to WNS India through the deputation of personnel in India and the said PE going by its very nature having no involvement either in the acquisition of BPO contracts or assignment/transfer thereof to WNS India, the sale consideration received by the assessee outside India for assignment or transfer of BPO contracts from (sic-to) WNS India cannot be treated as income attributable to the service PE of the assessee-company in India so as to bring the same to tax in India even as per article 7 of the India UK treaty. In favor of assessee
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