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2024 (2) TMI 830 - AT - Income TaxIncome taxable in India or not - FTS/FIS - payments received by the assessee from its Indian customers on account of Centralized Services - absence of PE in India - Fee for Technical Services as defined u/s 9(1)(vii) of the Income Tax Act, 1961 or “Fee for included services as defined under Article 12(4)(a) of the Indo-US DTAA - assessee is a non-resident company incorporated in ‘USA’ engaged in the business of providing various services to hotels in different countries across the world, including India - assessee claimed that the receipts from Indian Hotel owners towards centralized services, are in the nature of business profit and in absence of Permanent Establishment (‘PE’) in India are not taxable in terms of India – USA DTAA HELD THAT:- In assessee’s own case in [2023 (9) TMI 1434 - ITAT DELHI] for AY 2019-20 & 2020-21 wherein the Tribunal relying on the decision of the Tribunal in assessee’s own case in [2022 (7) TMI 781 - ITAT DELHI] for AY 2015-16 held that the impugned receipts in the hands of the assessee cannot be treated as FTS/FIS either under the provisions of the Act or under the India- USA DTAA. The fee received by the assessee under the Centralized Services Agreement cannot be treated as FIS either under Article 12(4)(a) or 12(4)(b) of the India–US Tax Treaty. As a natural corollary, it can only be treated as business income of the assessee. Hence, in absence of a PE in India, it will not be taxable. Appeal of the Revenue is dismissed.
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