2022 (11) TMI 135 - AT - Income Tax
Income deemed to accrue or arise in India - treating the amount received by the assessee during the year under consideration from its Indian subsidiary as ‘Fees for Technical Services’ (FTS) - Scope of Agreements entered into between the assessee and its Singapore entity - HELD THAT:- assessee will send necessary personnel to Indian subsidiary company NWIL’s facilities to provide management expertise and knowledge to assist with specific issues as necessary. This manifests that the assessee was not only providing some services but also deputing its personnel to its Indian entity for providing expertise and knowledge to assist with specific issues as necessary.
As clauses of the Addendum to the Agreement that the assessee was obliged to maintain all the necessary details and record of services and the expenses incurred thereon. Since such details were not readily available with the ld. AR, he requested that the matter may be sent back to the AO/TPO for fresh determination of the issue in the light of all the relevant information/evidence.
DR did not raise any serious objection to it. In view of the fact that certain crucial evidence for the decision is not available on record and further certain evidence filed as additional evidence has not been examined by the authorities below, we are of the considered opinion that it would meet the ends of justice if the impugned order on this score is set-aside and the matter is remitted to the file of the AO. We order accordingly and direct him to determine the precise nature of services rendered by the assessee to NWIL and then determine its taxability or otherwise. Needless to say, the assessee will be providing all the necessary details as called for by the AO for a proper determination of the issue.