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2018 (4) TMI 1681 - AT - Income TaxDisallowance u/s 40(a)(i) for non deduction of TDS u/s 195 - Payments were in the nature of fee for technical services - withholding of tax - India-US tax treaty - HELD THAT:- The scope of the services agreed with Fluor Transworld Services Inc. involves evaluation of different types of LNG vaporizers, recommendation of a suitable form of vaporizer and study of the benefits of various schemes for generating power through utilization of LNG. These services involve deployment of personnel having the requisite experience and skill to perform the services. However, it is not possible that the assessee would be able to carry out such services in future on its own without recourse to the service provider to fall within Article 12(4) of the India-US DTAA. The nature of services rendered does not indicate making available technical knowledge, skill, know-how etc. to the assessee. Thus, on the basis of the facts and circumstances of the case, payment to Flour Transworld Services Inc. does not qualify as fee for included services as per the provisions of the India-US DTAA. Although DR has argued vehemently against the action of the Ld. CIT (A) in deleting this addition, he could not point out any factual or legal inaccuracy in the finding recorded by the Ld. CIT (A). He also could not bring to our notice any judicial precedent in favour of the department. - Decided against revenue.
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