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2016 (5) TMI 1481 - AT - Income TaxIncome accrued in India - non-taxability of the receipts of DeGolyer and MacNaughton, USA - P.E. in India - India-USA DTAA - fees for technical services - Held that:- It is not in dispute that the services in question were rendered outside India. The payment in question cannot be construed as fees for technical services under India-USA DTAA, as no technical knowledge, skill, know how etc. was made available to the assessee. See DIT vs. Guy Carpenter & Co. Ltd. [2012 (5) TMI 31 - DELHI HIGH COURT] The amount paid by ONGC to the NRC can be brought to tax only under article 7 of the Indo-USA DTAA as business profit, provided the NRC has a Permanent Establishment (PE) in India and the profit in question is attributable to such PE. Admittedly NRC does not have PE in India. Under these circumstances the receipt of the non resident cannot brought to tax in India under the Indo-USA DTAA. Hence this ground of the assessee has to be allowed. The amount deposited by the assessee on the sums payable to DeGolyer and MacNaughton, USA should be refunded. - Decided in favour of assessee
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