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2023 (7) TMI 1089 - AT - Income TaxRevision u/s 263 - Receipt taxable in the hands of the assessee as Fee for Technical Services (“FTS”)/Fee for Included Services (“FIS”) u/s 9(1)(vii) of the Act and Article 12 of India-USA DTAA - As per CIT assessee had received a sum from customers in India on which though tax was deducted @ 10% at the time of remittances but the same was not offered to tax in India - HELD THAT:- Keeping in view the fact that the Tribunal in in assessee’s own case [2023 (4) TMI 239 - ITAT DELHI] decided this issue on merits in favour of the assessee, in our humble opinion, the very basis of assumption of jurisdiction by the Ld. CIT under section 263 of the Act in AY 2017-18 presently under consideration does not survive. As 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. In view of the same, 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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