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2023 (5) TMI 540 - AT - Income TaxIncome deemed to accrue or arise in India - taxability of Management Service Fees received by the assessee - Royalty receipt - assessee is a company incorporated in the Netherlands and is an international dredging contractor and has executed several contracts in India - HELD THAT:- We find that the coordinate bench of the Tribunal in assessee’s own case in Van Oord Dredging and Marine Contractors BV vs ADIT [2016 (11) TMI 1249 - ITAT MUMBAI], decided the similar issue in favour of the assessee and held that none of the services provided by the assessee in terms of the Service Agreement dated 01/04/2004 falls within the scope and ambit of “Royalty” as defined in Article 12(4) of the India Netherlands DTAA. The coordinate bench of the Tribunal also held that since the allocation of costs represents the actual expenditure, there cannot be any reason to hold that reimbursement of the cost can be reckoned as payment towards “Royalty”. The issue arising in the present appeal is recurring in nature and has been decided by the coordinate bench of the Tribunal in the preceding assessment years. Decided in favour of assessee. Short grant of credit of TDS - This issue is restored to the file of the AO with the direction to grant TDS credit, in accordance with the law, after conducting the necessary verification. As a result, grounds no.9-10 raised in assessee’s appeal are allowed for statistical purposes. Levy of interest u/s 234A - As we deem it appropriate to remand this issue to the file of the Assessing Officer for de novo adjudication after the necessary examination of the fact whether the return of income was filed by the assessee within the prescribed time under the Act. Accordingly, ground no.11, raised in assessee’s appeal is allowed for statistical purposes.
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