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2020 (10) TMI 1355 - AT - Income TaxTDS u/s 195 - Fees for Technical Services under Section 9(1)(vii) - Applicability of provisions of Section 195 on payments towards Instrument Flight Rules ('IFR') paper charts to Jeppessen GmBH, Germany - HELD THAT:- We are of the considered view in the light of decision of Co-ordinate Bench rendered in the case of Elsevier Information Systems Gmbh [2019 (5) TMI 405 - ITAT MUMBAI] and the judgment of Hon'ble Supreme Court rendered in the case of Kotak Securities Ltd. [2016 (3) TMI 1026 - SUPREME COURT] The assessee was not liable to deduct tax. Since the services do not fall within the ambit of ‘technical services’ as envisage u/s 9(1)(vii) of the Act and the article 12 of India-Germany DTAA. Therefore, we direct the assessing officer to delete this addition. Applicability of provisions of section 195 on payments towards mandatory training for pilots, to CAE simuflite Inc., USA (CAE) - assessee vehemently argued that the authorities below were not justified in making the addition and sustaining the same in respect of payments made towards mandatory training for pilots - HELD THAT:- The requirement of tax in respect of fee for technical services and technical knowledge or skills of the provider should be imparted to and absorbed by the receiver so that the receiver can deploy similar technology or techniques in the future without depending upon the provider. Another requirement is that as per the Article 7 of the India –USA DTAA the service provider should have a Permanent Establishment (PE) in India. We find in the contention of the Ld. counsel for the assessee that the judgment relied by the TDS officer rendered in the case of De Beers [2012 (5) TMI 191 - KARNATAKA HIGH COURT] which in fact helps the case of the assessee. We, therefore, direct the assessing officer to delete this addition.- Decided in favour of assessee.
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