TMI Blog2010 (9) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... l fees being paid to the foreign company – Held that: - income of the recipient chargeable under the head "salaries", then such payment will not be considered as fees for technical services - amounts reimbursed in identical manner were treated as "salary" - no substantial question of law arises - appeal is dismissed accordingly. - 13 of 2008 - - - Dated:- 13-9-2010 - HIGH COURT OF DELHI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greement between the assessee and the parent company was produced and even the agreement between the parent company and its employees, Mr. Peter Laser on the basis of which he was purportedly deputed to the Indian Company was produced, this amount should be treated as payment towards technical fee. 2. The Income Tax Appellate Tribunal has, however, accepted the contention of the assessee treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following findings were arrived at by the Tribunal holding that the aforesaid payment would be treated as salary to Mr. Peter Laser. "10. The foreign company had deputed one of its employees to look after the affairs of the Indian Company. The salary payable to this employee was to be borne by the foreign company. The Indian company was to reimburse this salary at cost, i.e. without any mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersonnel like Mr. Laser are taxable in India and they cannot be considered to be fees for technical services. Further, even as per Section 9 of the Act, the payment cannot be treated as fees for technical service. Explanation 2 to Section 9(1)(vii) gives the meaning of the expression "fees for technical services" as per which, inter alia, any consideration which would be income of the recipient ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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