9911796707
TMI Blog2016 (8) TMI 1348X X X X Extracts X X X X X X X X Extracts X X X X ..... reaty benefits under India-US Tax Treaty. As common issues arise out of these appeals, the same are being disposed-off by this combined order. First, we take up facts in ITA No. 5407/M/2014. 2. The facts in brief, are that the assessee is a foreign company incorporated in USA and is engaged in the business of providing strategic consultancy services. It filed its return of income for Assessment Year [AY] 2011-12 during November 2011 showing total income at Rs. 3,937/- which was processed under Section 143(3) at Rs. 79,16,300 vide Assessing Officer [AO] order dated 30.06.2014 after considering directions of Dispute Resolution Panel (DRP)-1, Mumbai under section 144C(5). During the impugned assessment year, the assessee had entered into inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia-USA treaty. Before DRP, the assessee contended that the same are business receipts and not taxable as FTS as per the treaty provisions. But DRP also relied on its earlier stand in assessee's own case in similar matter for Assessment Year 2009-2010 and uphold the stand of AO. Finally, the assessment was concluded by AO vide Assessment Order dated 30.06.2014 treating these services as FTS and declared taxable as per statutory provisions @15%. Aggrieved,the assessee is in appeal before us. 3. Before us, the Ld. Senior Counsel for the Assessee [AR] submitted that the assessee is incorporated and Tax Residence of US and eligible for benefits under India-US Tax Treaty. The Loaned / Borrowed services are not in the nature of Royalty / FTS as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. We have heard the rival contentions and perused the material on record. The facts are not in dispute and also the type of services provided is not in dispute. The only dispute is with regard to taxability of these services as FTS or business income. It is admitted fact that the assessee has merely supplied data, information etc. to its India counterpart and has not made any technology available which can be used by Mckinsey India. The assessee is providing these services on regular basis for the past several years and the same are held to be business receipts not taxable as per treaty provisions in assessee's own case for different assessment years by various authorities including ITAT which are as follows:- (i)ITA No. 8770/Mum/2011 Mck ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessment Year 2001-02: "For the reasons set out above, I am of the considered view that the CIT (A) indeed erred in holding that the monies received by the appellant-companies from McKinsey India constitute 'fees for included services' within the meanings of Article 12 (4) of the India-US treaty, and accordingly liable to be taxed in India. In my view, the payments in question, for the detailed reasons set out above, cannot be treated as 'fees for included services'. Since the appellant companies do not have any permanent establishment in India, the income so arising to them in India cannot be taxed under Article 7 as 'business profits' either. Therefore I direct the assessing officer delete the impugned additions. The assessee get relie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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