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2023 (9) TMI 1448 - AT - Income TaxAccrual of income in India - payments received by the assessee from its Indian customers on account of Centralized Services - whether would constitute 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 corporate entity incorporated in United States of America (‘USA’) engaged in the business of providing various services to hotels in different countries across the world, including India - HELD THAT:- We find, while deciding identical issue in assessee’s own case in [2022 (9) TMI 1572 - ITAT DELHI] for assessment years 2016-17 and 2017- 18, the Tribunal, in order 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. Notably, the aforesaid decision of the Coordinate Bench has been affirmed by the Hon’ble Jurisdictional High Court while deciding Revenue’s appeal in judgment [2023 (5) TMI 1313 - DELHI HIGH COURT] Since, the issue in dispute is squarely covered in favour of the assessee by the decision of the Tribunal and Hon’ble Jurisdictional High Court, 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. Ground is dismissed.
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