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2023 (1) TMI 1304 - AT - Income TaxIncome taxable in India - receipts on account of support and maintenance services to its customers in India - Fees for Technical Services (‘FTS’) under the Act and also India-Singapore DTAA - DRP has arrived at the conclusion of taxability of IT Support service charges as FTS by distinguishing the earlier years’ tribunal orders - HELD THAT:- As decided in own case[2022 (7) TMI 744 - ITAT PUNE] DRP in the earlier orders did not draw any such distinction and held the entire amount as chargeable to tax as royalty in the light of the decision in Samsung [2011 (10) TMI 195 - KARNATAKA HIGH COURT] When the matter came up before the Tribunal, the decision in Engineering Analysis [2021 (3) TMI 138 - SUPREME COURT] had been delivered by then, based on which the decision of the AO, treating the composite amount as royalty, was reversed. When neither the AO nor the DRP had treated the two streams of income as separate from each other, having different connotation in terms of the DTAA, there could have been no question of the Tribunal setting up a new case. Be that as it may, we have eloquently discussed the issue above and reached the conclusion that the income from IT Support services, even if viewed independent of software license income, is not chargeable to tax. Decided in favour of assessee.
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