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2022 (8) TMI 1441 - AT - Income TaxRevision u/s 263 - income taxable in India - no enquiry v/s inadequate enquiry - whether income received by the assessee from its services in India are neither taxable under Article-12 of the India – Netherlands DTAA as they are not in the nature of Royalty or FTS? - As per CIT no adequate enquiry has not been conducted by the AO in assessment proceedings - HELD THAT:- The case of the assessee is that the services rendered by the assessee are mainly in the nature of support services. Since, the services rendered does not “make available” any technical services, the services are not taxable in line with Article-12 of the India-Netherlands DTAA. AO applied his mind on the same and formed an opinion that fee received by assessee is not taxable in India as ‘Fee for Technical Services’. AO has taken a possible view based on the facts and supported by legal jurisprudence. Thus, it is evident that the AO had made enquiries and after examining the documents on record passed the assessment order. Since, the assessment was completed u/s. 143(3) of the Act the presumption is that the Assessing Officer has examined all documents on records before passing the order, even though elaborate discussion is not made in the order. In the instant case, as has been pointed earlier the AO made enquiry. The assessee in response to the questionnaire issued by Assessing Officer furnished details. AO after examining the documents furnished by assessee passed the order. Hence, the instant case is not that of lack of enquiry by the AO. Therefore, the ratio of the decisions relied upon by the Revenue would not apply in the facts of the present case. In the light of the facts discussed above, we hold that the CIT has erred in exercising jurisdiction u/s. 263 of the Act. Decided in favour of assessee.
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