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2023 (9) TMI 1434 - AT - Income TaxIncome taxable in India or not - FTS/FIS - payments received by the assessee from its Indian customers on account of Centralized Services - Fee for Technical Services as defined u/s 9(1)(vii) of the Income Tax Act, 1961 or “Fee for included services as defined under Article 12(4)(a) of the Indo-US DTAA - assessee is a non-resident company incorporated in ‘USA’ engaged in the business of providing various services to hotels in different countries across the world, including India - assessee claimed that the receipts from Indian Hotel owners towards centralized services, are in the nature of business profit and in absence of Permanent Establishment (‘PE’) in India are not taxable in terms of India – USA DTAA HELD THAT:- We find, while deciding identical issue in assessee’s own case [2022 (7) TMI 781 - ITAT DELHI], after analyzing in detail the nature and character of receipts has held that they cannot be treated as FTS/FIS, either under the provisions of the Act or under the treaty provisions. Thus we find no reason to interfere with the decision of learned first appellate authority in declaring the receipts from centralized services to be not in the nature of FTS/FIS. Decided against revenue.
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