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2019 (7) TMI 1971 - ITAT MUMBAIIncome deemed to accrue or arise in India - Treating salary and other related costs reimbursed to the appellant as Fees for Technical Services - taxing the amount received as reimbursement of the salary and other related costs as 'fees for technical services' in terms of section 9(1)(vii) of the Income-tax Act, 1961 as well as under Article 12 of India-Canada DTAA") - HELD THAT:- We find substance in the submissions made by Ld. Sr. Counsel since the perusal of documents on record reveal that the assessee has entered into employee secondment agreement with the Indian entity. Pursuant to Clause (6) of the agreement, the assessee was to be reimbursed with direct wages and benefit costs. The role and responsibilities of Mr. Anindya Ghosh, has been remunerated in the submissions dated 29/03/2016. The perusal of Form 16 & 12BA, as placed on record, would reveal that the Indian Entity has deducted due taxes against the aforesaid payments. The matter would go back to Ld. AO for re-appreciation of correct facts and re-adjudication of the matter in the light of submissions made by Ld. Sr. Counsel. Needless to add hat adequate opportunity of being heard shall be granted to the assessee to substantiate its stand. Appeal stands allowed for statistical purposes.
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