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2018 (11) TMI 863 - AT - Income TaxIncome accrued in India - Royalty receipt - consideration received from Indus Tower Ltd., for supply of software - considering Indian subsidiaries as PE of the assessee - India-Isreal DTAA - Held that:- As discussed by the Tribunal in assessee’s own case, we hold that amount received by the assessee are not in the nature of royalty as per Article 12 of India-Isreal DTAA is not taxable as such in India, but has to be treated as business profit of the assessee. Treating the DTAA India as an independent agent PE of assessee - Held that:- The Tribunal in assessee's own case in A.Y. 2006-07 clearly held that assessee had no permanent establishment in India. It is further noted that TTI India has entered into the agreement on independent basis. No facts have been discussed by the Ld. CIT(A) to show that how the judgment of Rolls Royce PLC was applicable in the preference of the decisions of the Tribunal rendered in assessee's own case. Under these circumstances, we do not find any reason to deviate from the order of the Tribunal of the earlier years. TTI India cannot be treated as assessee's dependent agent PE in India, hence, the amount so received is not taxable at the hands of the assessee. The grounds are allowed. Non giving credit of the tax deducted at source - Held that:- We direct the AO to verify the factual figures and after verification allow necessary credit for the tax deducted at source.
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