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2018 (3) TMI 1917 - AT - Income TaxFee for technical services - services provided by the assessee to Sandvik Asia Ltd. and Walter Tools India Pvt. Ltd. - Article 12 of Double Taxation Avoidance Agreement (DTAA) between India and Portuguese Republic - HELD THAT:- We find that the additions on this count were made by Assessing Officer in earlier assessment years as well. The matter travelled to the Tribunal for the first time in assessment year 2007-08. The Tribunal after analyzing the facts of case, DTAA between India and Portuguese Republic, Protocol to the Tax Treaty between India and Sweden and various case laws held that the payments received by assessee on account of management services fee from Sandvik Asia Ltd. and technical services fee from Walter Tools India Pvt. Ltd. cannot be brought to tax in view of principle of the most favoured nation (MFN) clause in the tax treaty. It is an undisputed fact that the nature of payments received by assessee in assessment year under appeal is identical to the one received in earlier assessment years. We find that no merit in the appeal by the Department. Accordingly, the impugned order is upheld and the appeal of the Revenue is dismissed.
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