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2018 (9) TMI 1811 - ITAT CHENNAIManagement fees receipt from subsidiary company in India - Holding subsidiary company relation - income accrued in India - payment was a managerial service vs fee for included services - exemption under the article 12 of DTAA between India and US - assessee contends that it is a managerial service, but the authorities below have observed from the service agreement that the technical knowledge was made available to the holding company, which was used and utilized by the Indian Company for its benefit - HELD THAT:- As per Article 12(4) of the DTAA, it is clear and absolute that the payment that the company has received was “fee for included services”. To claim that the said payment was a managerial service, the assessee has not furnished any detailed, the nature of services that are included under managerial services along with details invoices. In view of the above and to give one more opportunity, we remit the matter back to the file of the Assessing Officer to consider the submissions, if any, and decide the issue in accordance with law after allowing an opportunity of being heard to the assessee. Beyond the scope of Article 12 of the DTAA and in violation of the said article, in which taxing clauses were absolutely given, nothing is provided under section 90(2) of the Act to ignore the DTAA and consider to allow any claim of the assessee. Thus, the alternative plea raised by the assessee stands dismissed. - Decided partly in favour of assessee for statistical purposes.
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