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2014 (8) TMI 355 - HC - Income TaxTechnical services u/s 9(1)(vii) - Whether the Tribunal was justified in holding that the payments received under the various contracts are in the nature of technical service fees covered by the proviso to section 9(1)(vii) – Held that:- The Reference is wholly misconceived - whether payments received under various agreements were in the nature of “technical service fees” or “royalty”, are questions of fact arrived at after interpreting various clauses of the agreements - the order of the ITAT did not give rise to any question of law - CIT (Appeals) as well as the Tribunal have analysed and interpreted the various agreements entered into between the Assessee Company and FCI, IPCC and J.K. Synthetics Ltd in great detail and thereafter come to the conclusion that the payments made in the financial year were by way of fees for technical services. Exemption from tax - Whether these payments by way of fees for technical services were exempt from tax – Held that:- All the agreements between the Assessee Company and FCI, IPCC and J.K. Synthetics Ltd. were entered into prior to 1st April 1976 - clearly the proviso to section 9(1)(vii) of the Act was attracted - CIT(A) as well as the Tribunal after holding that that the payments received by the Assessee Company from FCI, IPCC and J.K. Synthetics Ltd. under the various agreements were in the nature of technical service fees were fully justified in holding that the payments were exempt from tax by virtue of the proviso to section 9(1)(vii) of the Act – Decided against Revenue.
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