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2023 (5) TMI 1296 - AT - Income TaxAccrual of income in India - Sale of logistic services and global account manager expenses received - assessed as Fees for Technical Services (“FTS”) under the Act as well as India-USA DTAA - HELD THAT:- Revenue has not disputed the fact that the Coordinate Bench of the Tribunal for the preceding AY(s) [2022 (1) TMI 1290 - ITAT DELHI], [2020 (10) TMI 654 - ITAT DELHI] have decided the issues in favour of the assessee wherein held the issues in question are no longer res-integra and has consistently been decided in favour of the assessee in preceding AYs. Addition on account of sale of logistic services treating the same as FTS under the Act as well as India-USA DTAA - The Coordinate Bench of the Tribunal in its decision [2022 (11) TMI 125 - ITAT DELHI] for AY 2018-19 where held that the amount received by the assessee from freight/logistic support services cannot be treated as FTS/FIS either under the Act or under treaty provisions. Accordingly, the addition was deleted. Identical view was expressed by the Tribunal while deciding the appeals for subsequent assessment years, as noted above. In fact, though, the departmental authorities were conscious of the fact that the Tribunal has decided the issue in favour of the assessee in earlier assessment years, however, for the purpose of keeping the issue alive, a contrary decision has been taken. There being no change either in the factual or legal position relating to the disputed issue in the impugned assessment year, respectfully following the consistent view of the Tribunal in assessee’s own case in the preceding assessment years, as mentioned above, we delete the addition made by the assessing officer. Addition of reimbursement of global account management charges received by the assessee treating the same as FTS under the Act as well as India-USA DTAA - The Coordinate Bench of the Tribunal in its decision [2022 (11) TMI 125 - ITAT DELHI] for AY 2018-19 observed that the issue has been consistently decided in favour of the assessee in all these years, while holding that the amount received towards reimbursement of global account management charges is not in the nature of FTS/FIS. Addition of reimbursement of lease line charges received treating the same as royalty under the Act as well as India-USA DTAA - Tribunal in its decision [2022 (11) TMI 125 - ITAT DELHI] AY 2018-19 held that lease line charges are not in the nature of royalty - As the payment made, being not in the nature of royalty, no disallowance under section 40(a)(i) of the Act can be made. Assessee appeal allowed.
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