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2017 (1) TMI 1806 - AT - Income TaxFee for Technical Service (“FTS”) - treating the reimbursements received from various customers as income - Contention of Appellant that the reimbursements received by the Appellant do not quality as income under the Act being pure reimbursements that do not contain mark up - HELD THAT:- The assessee has given the details of the reimbursement of expenses in detail - There is a mention that the company has received the fee as well as the reimbursement of expenses - The travel within India is also to be reimbursed separately and is not included in the reimbursement cap of USD 350,000. The interpretation of Section 9(1)(vii) of the Income-tax Act along with Article 13 of DTAA between India & UK clearly mention that reimbursement charges/expenses will not be considered as fees for Technical Services. CIT(A) has overlooked these aspect. Thus, this ground No. 2 is allowed for both Assessment Years. Exemption for introductory educational programmes/workshops - HELD THAT:- Assessee is not an educational institution or teaching in an educational institute - The consideration was in the nature of Fee for Technical Services only. Thus, the Assessing Officer was rightly made and addition which was confirmed by the CIT(A). There is no need to interfere with the order of the CIT(A) in respect of this issue. Ground No. 3 for A.Y. 2006-07 is dismissed. Applicability of Section 44B and 44BB of the Act were not at all the issues before the CIT(A) and was never part of the Assessment Order. Therefore, the judgments relied upon by the CIT(A) are not relevant at all to the present case.
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