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2023 (8) TMI 333 - AT - Income TaxIncome accrued in India - Taxability of foreign income in India - Royalty receipt - Fees for Technical Services on accrual basis - differential amount of actual receipt and amount as accrued - determination of actual receipt in accordance with the India- Switzerland Tax Treaty - HELD THAT:- The assessee is a NRI and has received royalty from ABB Technology Ltd. of Rs. 184,07,46,730 which has been offered to tax @ 10% and the same is reflected in Form 26AS. The assessee is offering income since AY 2011-12 on cash basis. From the Form 3CEB the AO found a difference - AR assessee submitted this amount has not been received by the assessee. The facts of the above decision on fees for technical services in M/s. ABB AG (2020 (12) TMI 74 - ITAT BANGALORE] relating to India-Germany DTAA are similar to present case as held that FTS is taxable only in the year of receipt as per the provisions of DTAA. Accordingly, we are of the view that the tax authorities are not justified in assessing the impugned income on accrual basis. Only difference is that it relates to royalty under India- Switzerland DTAA, and Article 12 of DTAA defines royalty and fees for technical services in the same manner and also the DTAA provisions of India-Germany and India-Switzerland are similar. Therefore, respectfully following the above judgment, we allow the appeal of the assessee.
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