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2021 (7) TMI 46 - AT - Income TaxIncome accruing or arising in India u/s 9(1)(i) - amount received by the assessee from Tata Communications Ltd. (“TCL”) as Standby Maintenance Charges - CIT(A) concluded that the entire amount of turnover (receipts) of Standby Maintenance Charges received by the assessee from TCL was to be treated as its turnover for the purpose of taxation in India - whether the CIT(A) had rightly observed that the Standby Maintenance Charges received by the assessee from TCL was not liable to be taxed as FTS and was to be brought to tax as its ‘business income’? - HELD THAT:- As decided in own case [2019 (3) TMI 1893 - ITAT MUMBAI] we find that after exhaustive deliberations the Tribunal had concluded that the Standby Maintenance Charges received by the assessee from TCL could not be assessed as FTS and was its ‘business income’ that was taxable only to the extent of its reference to the “business connection” in India Amounts received by the assessee towards Standby Maintenance Charges from TCL were not in the nature of FTS u/s 9(1)(vii) of the Act, and was to be assessed as its business income, and that too only to the extent of its reference to the “business connection” in India. At the same time, not finding favour with the view taken by the CIT(A) that the entire turnover (receipts from the Indian parties) of Standby Maintenance Charges was liable to be treated as turnover for the purpose of taxation in India, we vacate the same. - Decided in favour of assessee.
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