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2023 (8) TMI 445 - AT - Income TaxIncome taxable in India - payment received by the assessee towards TSIS services - Royalty receipts - HELD THAT:- It is noticed that the assessee has entered into an agreement with the Indian companies for rendering TSIS services and the terms of the agreement as per the submission of the ld AR are verbatim similar to the agreement which were in force for A.Ys. 2012-13 to 2015-16. It is also noticed that the DRP while upholding the treatment of TSIS fees as royalty, while following its own order for A.Y. 2015-16 did not bring out any contrary finding with regarding the nature of services rendered by the assessee or the terms as per the terms of agreement dated 30/11/2017. Therefore, in our considered view, the decision of the co-ordinate bench in assessee’s own case for A.Ys. 2012-13 to 2015-16 [2023 (1) TMI 1207 - ITAT MUMBAI] is applicable to the year under consideration also. Therefore, we direct the Assessing Officer to delete the addition made towards TSIS services by treating the same as royalty. Management Fees taxed as fees for technical services (FTS) - HELD THAT:- Management fees received by the assessee from Indian group companies should not be treated as FTS and accordingly, not taxable in India. This ground is allowed in favour of the assessee. Claim made first time before DRP - Guarantee Fees - assessee claimed that the guarantee fees should not be taxed in India - claim could be made only through filing the revised return of income and since the assessee did not file any revised return the claim made through revised statement of income cannot be accepted - HELD THAT:- As decided in Pruthvi Brokers & Shareholders (P.) Ltd. [2012 (7) TMI 158 - BOMBAY HIGH COURT] had held that any valid claim of assessee could be made for the first time either by way of filing a revised computation or before the appellate authorities. In assessee's case the claim is made for the first time before the DRP that the guarantee fees earned by the assessee is not taxable as per the DTAA. Thus if the assessee is entitled for a deduction, as per law and facts, same should not be denied merely because the claim was not made in the return of income. Since the lower authorities have not examined the issue on merits, we remit the issue back to the AO for a fresh examination.
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