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2023 (7) TMI 553 - AT - Income TaxIncome taxable in India - Treating the remittance as fees for technical services - supervision installation and commissioning services - whether activity/services performed by CBV did not impart or transfer any technical knowledge/knowhow skills to the services recipient? - DTAA between India and Belgium - Restrictive definition of FTS as in the India-Portugal DTAA cannot be extended into the India-Belgium DTAA - HELD THAT:- Coordinate bench of the ITAT in the case of M/s Essity Hygiene & Health [2022 (6) TMI 1411 - ITAT MUMBAI] wherein after following the decision of ITAT Pune [2022 (2) TMI 769 - ITAT PUNE] it is held that there is no requirement of separate notification for importing the beneficial treatment from the agreement. Therefore, respectfully following the aforesaid decisions we are of the considered view that CBDT Circular No. 3/2022 dated 03.02.2022 is not applicable to the present appeal, therefore, assessee is entitled to claim the benefit of the restricted definition under India-Portugal DTAA. Since, the assessee have been found not to have made available any technical knowledge experience or skill or knowhow, therefore, the impugned services received by the assessee cannot be taxed under the provision. Accordingly, appeal of the assessee is allowed.
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