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2013 (2) TMI 603 - AT - Income TaxTDS on fees for technical services - DTAA between India and UK - whether the agreement entered into by the assessee and Xennia was about purchase for machinery only or it dealt with something more than that ? Held that:- Referring to the terms of the agreement clearly prove that Xennia had supplied the technology to the assessee. Not only the assessee was using it, it had the right over the Intellectual Property also. Agreement entered in to by the assessee-company allowed it 'to file patent application, design application or any such application for intellectual property rights arising out of foreground IP'. In these circumstances, the view of FAA is to be agreed that the transaction was not for sale of printer only & it included the technology also. When a particular technology was made available to the assessee by Xennia exclusively, it cannot be said that the agreement was only for sale of printer. Therefore, upholding the order of the FAA, effective Ground of appeal i.e. Ground No.1 decided against the assessee. @ 15% or 10% as prescribed in section 115A(1)(b)(BB)- Perusing the provisions of the Act to be covered u/s. 115A(1)(b)(BB) as per the said provisions, tax on dividends, royalty and technical service fees in case of foreign companies has to be computed in a particular manner, if it is entered in to after a particular date. As neither the AO nor the FAA had any occasion to deal with the issue. Assessee had also not raised it before the FAA. So, in the interest of justice be restored to the file of the AO for the limited purpose of deciding the question of applicability of lower rate of tax for the transaction-in-question - in favour of assessee by way of remand.
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