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2023 (4) TMI 239 - AT - Income TaxIncome deemed to accrue or arise in India - applicable treaty is Indo-US Tax Treaty - PE in India - Receipts from the Indian customers as subscription fees - treating it as Fees for Technical Services ('FTS') - HELD THAT:- Article 7 of India-US DTAA, the income from subscription to Assessee’s data base is in the nature of business profit, therefore, the same is not taxable in India as the assessee has no permanent establishment in India. By respectfully following the ratio laid down by the Mumbai Tribunal in the case of Elsevier Information System GmbH[2019 (5) TMI 405 - ITAT MUMBAI] in the absence of any material available on record to prove that the assessee is providing full fledged service and solutions for legal professions, we are of the opinion that the A.O. has committed an error in making the addition.The payment received by the assessee is in the nature of ‘Business Profit’ which cannot be brought to tax in India in the absence of PE. Accordingly, the grounds of both the appeals of the assessee are allowed.
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