TMI Blog2018 (3) TMI 1917X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived by assessee on account of management services fee from Sandvik Asia Ltd. and technical services fee from Walter Tools India Pvt. Ltd. cannot be brought to tax in view of principle of the most favoured nation (MFN) clause in the tax treaty. It is an undisputed fact that the nature of payments received by assessee in assessment year under appeal is identical to the one received in earlier assessment years. We find that no merit in the appeal by the Department. Accordingly, the impugned order is upheld and the appeal of the Revenue is dismissed. - ITA No.498/PUN/2016 - - - Dated:- 23-3-2018 - SHRI ANIL CHATURVEDI, AM AND SHRI VIKAS AWASTHY, JM For the Assessee : Shri Nikhil Pathak For the Revenue : Smt. Nirupama Kotru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant to the assessment year under appeal the assessee entered into transactions with its subsidiaries in India and received payments for the services provided as under : Sr. No. Name of the AE Nature of transaction Amount in Rs. 1 Sandvik Asia Ltd. Management service fees 21,24,70,400 2 Walter Tools India Pvt. Ltd. Technical services 1,04,98,188 TOTAL 22,29,68,588 4. The ld. AR pointed that the Assessing Officer held the services rendered by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of the authorities below perused. The solitary issue raised by the Revenue in appeal is against the findings of Assessing Officer/DRP in holding that the services provided by the assessee to Sandvik Asia Ltd. and Walter Tools India Pvt. Ltd. do not fall within the ambit of fee for technical services‟ under clause (b) of para 4 of Article 12 of Double Taxation Avoidance Agreement (DTAA) between India and Portuguese Republic. We find that the additions on this count were made by Assessing Officer in earlier assessment years as well. The matter travelled to the Tribunal for the first time in assessment year 2007-08. The Tribunal after analyzing the facts of case, DTAA between India and Portuguese Republic, Protocol to the Tax Treaty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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