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2015 (10) TMI 486 - HC - Income TaxInterpretation of section 9(1)(vii) of the Income Tax Act, 1961 and Article 12(4) of the Indo German Double Taxation Avoidance Agreement - Held that:- The nature of work is that the assessee is approached by certain parties for issuance of this standard certificate. The process of evaluation in the form of audit of activities undertaken by the clients is carried out through the audit parties of the assessee. Based on the report of such audit party, a certificate to individual clients/applicants are issued. This is after reviewing the report and several stages of audit work which has been carried out. The certificates are issued for specific and certain period. These are neither technical nor managerial nor consultancy services. There is no advice given but insofar as this activity is concerned, the record indicates that the audit work and certification would not come within the realm of fees for technical services. In the circumstances, there is nothing in the activities which could enable the revenue to bring them within the purview of section 9 (1)(vii) and Article 12(4) of Indo German Double Taxation Avoidance Agreement. There is a finding of fact and which is rendered after examination of the assessee's records and the service and their nature. Having analysed all this, the Tribunal concluded that the assessee's services are not of the nature falling within statutory provision. In these circumstances, the findings of fact at paragraph 9 and 10.3 of the order under challenge cannot be termed as perverse or vitiated by any error of law apparent on the face of the record. It is fairly conceded that once the fees are not falling within above provisions, then, further question and of applying section 44D and Section 115A of the Income Tax Act, 1961 would not arise.
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