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2020 (2) TMI 1678 - AT - Income TaxTaxability of Home Office Allocation receipts - FTS receipts - HELD THAT:- As decided in assessee own case [2017 (12) TMI 299 - ITAT KOLKATA] receipt in question is not FTS and cannot be charged to tax in the hands of the Assessee. Nevertheless, we are of the view that it would be just and appropriate to direct the AO to examine the claim of the Assessee in this regard and if the claim of the Assessee is found to be correct, then the receipt in question cannot be taxed as FTS. We hold and direct accordingly. Thus the relevant grounds of Cross objections by the Assessee are allowed. Agreement between the appellant and TIL was purely advisory services and such advisory services rendered cannot be treated as fees for included services under Article 12(4)(b) since there is no make available of technology. Home office receipts during the year under consideration are pursuant to the same agreement between the appellant and TIL which has already been considered by the Hon’ble ITAT while adjudicating the appeals for A.Ys 2002-03 to AY 2007-08. Thus we uphold the same and dismiss this ground of the revenue for all the Assessment Years. Taxability of charge back of receipts - assessee had received an amount on account of charges from TIL/Timken Engineering and Research India Private Limited (TERI). These receipts were reimbursements of payments made by the assessee to third parties towards, provision of various services to TERI, TIMPL and TIL - HELD THAT:- As decided in assessee own case [2017 (12) TMI 299 - ITAT KOLKATA] the sums received by the appellant in question are pure reimbursements on actual with no mark up and the appellant is not the ultimate beneficiary of the sum in question. The appellant has not rendered any service to TIL and there is no basis on which the sum in question can be considered as FTS in the hands of the appellant. Further, even assuming it is FTS, the services rendered does not make available any technical skill, knowledge, etc. to the service recipient.
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