2023 (3) TMI 262 - AT - Income Tax

Income deemed to accrue or arise in India - treating the receipt of fees for business support services as Fees for technical services ('FTS') as per Article 12 of the tax treaty between India and Netherlands - Whether services are managerial in nature and hence do not fall within the definition of FTS? - HELD THAT:- We note that identical issue was subject matter of consideration of the ITAT in assessee’s own case [2023 (3) TMI 165 - ITAT DELHI] - The Tribunal had held that the payment received cannot be treated as FTS under Article 12 (5) of India Netherlands DTAA and the addition made is to be deleted.

Since facts in the present case are identical to the aforesaid and no distinguishable feature has been pointed out, hence following the precedent we direct that the payment received in this case cannot be treated as FTS under Article 12 (5) of India Netherlands DTAA. Hence, this ground of assessee stands allowed.