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TMI Blog2019 (7) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... , proceedings to dispose them off by this consolidated order for the sake of convenience. 2. ITA No.2333/PUN/2016 is an appeal by the Revenue in the case of Faurecia Automotive Holding against the order passed by the ld. CIT(A)-13, Pune dated 07-07-2016 deleting penalty of Rs. 26,67,220/- imposed by the Assessing Officer u/s.271(1)(c) r.w.s. 144C(13) of the Income-tax Act, 1961 (hereinafter called 'the Act') in relation to the assessment year 2011-12. 3. Briefly stated, the facts of the case are that the AO passed the assessment order making two additions, viz., (1) Reimbursement of salary paid to expatriate Mr. Franck Euvrard treated as Fees for technical services; and (2) Receipt of IT support services etc. considered as Royalty as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... salary paid by it to the expatriate Mr. Franck Euvrard in France, which was treated by the AO as "Fees for technical services" (FTS) and included in the total income. 8. Having heard both the sides and gone through the relevant material on record, it is found as an admitted position from the rival sides that the facts and circumstances of this ground are mutatis mutandis similar to those for the A.Y. 2011-12. Following the view taken for the A.Y. 2011-12, we order to delete the addition. This ground is, therefore, allowed. 9. The assessee has raised an additional ground in respect of taxation of IT support services fees received from Faurecia India as Royalty as well as FTS. The assessee rendered IT support services to Faurecia India for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xamined the nature of services and held the same to be income from Royalty/FTS. He, therefore, added Rs. 3,24,83,500/- in the total income of the assessee, against which the assessee has approached the Tribunal. 16. We have heard both the sides gone through the relevant material on record. It is observed from the "Costs Allocation Agreement" between the assessee and Faurecia Technology Center India Pvt. Ltd., whose copy has been placed at page 178 onwards of the paper book that the assessee, a resident of France, rendered services to the Indian entity which have been narrated in Exhibit-1 of the agreement reading as under : "The service provider assists the Company in the computerisation of systems, office automation and utilisation of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (applications, infrastructure)." 17. On going through the above nature of services, it is seen that these are similar to the Technical services provided by Faurecia Automotive Holding, France, to Faurecia Technology Center India Pvt. Ltd., which the Tribunal has dealt with in its order for the A.Yrs. 2011-12 and 2012-13. The Tribunal has held that such services are not in the nature of Royalty/FTS and accordingly deleted the addition. The ld. DR fairly admitted that the Technical services discussed in the case of M/s. Faurecia Automotive Holding are similar to those rendered by the instant assessee. Following the view taken in such case, we order to delete the addition. 18. The other grounds challenging initiation of re-assessment procee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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