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2023 (3) TMI 1187 - AT - Income TaxIncome deemed to accrue or arise in India - Fee For Technical Service (FTS) under Article 12(4)(b) of India-Singapore Double Taxation Avoidance Agreement (DTAA) - amount received towards provision of management support services to the Indian subsidiary - HELD THAT:- As in assessee’s own case [2021 (10) TMI 443 - ITAT DELHI] we hold that the amount received by the assessee cannot be regarded as FTS under Article 122(4)(b) of the Act. Accordingly, addition made is deleted. Grounds are allowed. Addition of Management Support Charges - whether the services rendered by the assessee under Management Support Service Agreement are ancillary and subsidiary to the license granted for user of brand name, charges received from which are in the nature of royalty? - HELD THAT:- After threadbare analysis of Management Support Services Agreement and the fee received under various heads in pursuance to such agreement, the Co-ordinate Bench in assessee’s own case in assessment year 2012-13 [2021 (10) TMI 443 - ITAT DELHI] has given a categorical finding that it does not come under Article 12(4) of India-Singapore DTAA. As per in the binding judicial precedents rendered in assessee’s own case as well as in case of group company, viz, Sheraton International Inc. [2009 (1) TMI 27 - DELHI HIGH COURT] we have no hesitation in holding that the fee received by the assessee under the Centralized Services Agreement cannot be treated as FIS either under Article 12(4)(a) or 12(4)(b) of the India–US Tax Treaty. As a natural corollary, it can only be treated as business income of the assessee. Hence, in absence of a PE in India, it will not be taxable - Assessee appeal allowed.
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