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2018 (3) TMI 791 - AT - Income TaxTaxability of receipts - Borrowed Service charges/Loaned Service Income - Royalty or Fees for included services - initiation of MAP settlement - DTAA - PE in India - Held that:- We hold that the taxability of the receipts was to be determined as per the MAP settlement. Therefore, the afore-said receipts, being Business Profits was covered by Article-7 of the Treaty and was not in the nature of Royalty or Fees for included services. The revenue has nowhere disputed or established that the assessee had PE in India. Therefore, the said receipts were not chargeable to tax in India except Firm Function Service Charges of ₹ 63.02 Crores, which were to be accepted at a mark up of 3% as per MAP settlement of earlier years. Needless to say that the same may suitably be modified by the revenue, if required, on the basis of outcome of MAP settlement for impugned AYs. Reimbursement of Firm Training Charges & Other expenses - Held that:- As AR, at the outset, submitted that the issue requires re-appreciation by lower authorities since these expenses were mere reimbursements in nature without any profit element and therefore, the assessee be afforded another opportunity to demonstrate the same. The Ld. DR did not raise any serious objections against the same. Resultantly, the issue stands remitted back to the file of Ld. AO for re-adjudication in the light of submissions made by Ld. AR.
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