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2022 (5) TMI 1057 - AT - Income TaxPE in India - Fees for Technical Services - HELD THAT:- It is seen that the Tribunal, right from the A.Y. 2003-04 up to the A.Y. 2014-15, has decided the issue in favour of the assessee by holding EIPL does not constitute PE of the assessee in India. The ld. DR candidly admitted that there is no change in the facts and circumstances of the instant year vis-à-vis the earlier years. Respectfully following the precedent, we hold that the EIPL does not constitute the assessee’s PE in India. This issue is therefore, decided in favour of assessee. Reimbursement from the Indian subsidiary as income - mark-up of 1% was added to the cost of services - as per AO assessee short reflected income - HELD THAT:- It is found as an admitted position that the sum of Rs.29.50 lakh charged by the assessee is inclusive of 1% mark-up to the actual costs incurred by the assessee. The ld. AR however, contended that only mark-up of 1% should be brought to tax and not the full amount. We are unable to countenance the proposition propounded by the ld. AR for the obvious reason that the sum of Rs.29.50 lakh is admittedly not reimbursement as it has a mark-up added to it. Once a particular receipt is not reimbursement and also includes mark-up, it becomes chargeable to tax in the gross taxation regime. On a specific query, the ld. AR submitted that the sum of Rs.29.50 lakh is otherwise in the nature of Fees for Technical Services considered by the assessee as first item in its computation of income. We, therefore, uphold the view point of the AO on this score.
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