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2021 (1) TMI 76 - AT - Income TaxIncome accrued in India - taxability of receipt towards Infrastructure and Hosting Data Centre (IDC) charges by treating it as royalty - India–Singapore DTAA - assessee is a company incorporated in Singapore and is engaged in provision of services relating to developing, marketing and implementing incentive based strategies and technologies to build loyalty and to reward long-term relationships through the utilization of the internet, wireless technology and offline solutions to its clients - During the previous year relevant to the assessment year under dispute, the assessee provided three different categories of services to its three Indian group companies on payment basis - HELD THAT:- As decided in assessee's own case for 2010–11 [2020 (7) TMI 644 - ITAT MUMBAI] we hold that the amount received by the assessee from provision of IDC services cannot be treated as royalty either under the provisions of the Act or under India– Singapore DTAA, hence, cannot be taxed at the hands of the assessee. Taxability receipt towards management services fee by treating it as fees for technical services (FTS) - HELD THAT:- As relying on assessee own case [2020 (7) TMI 644 - ITAT MUMBAI] management fee received by the assessee cannot be treated as FTS under Article 12(4) of the India–Singapore Tax Treaty. Therefore, we hold that the amount received by the assessee towards management fee is not taxable at the hands of the assessee. This ground is allowed. Taxability of receipt referral fee by treating it as royalty and FTS - HELD THAT:- As decided in own case [2020 (7) TMI 644 - ITAT MUMBAI] revenues under the referral agreement is not taxable in the hands of the appellant as royalty under the Act and/or India-Singapore DTAA or FTS under the India-Singapore DTAA - we hold that the amount received by the assessee not being in the nature of royalty or FTS either under the Act or under the tax treaty, is not taxable at the hands of the assessee. This ground is allowed.
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