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TMI Blog2021 (7) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... nd circumstances of the case and in law the Ld.CIT Appeal has erred in treating the Global Account Coordination Cost as Fees for Technical Services. 1.3. On the facts and circumstances of the case and in law the Ld.CIT Appeal has erred in not appreciating that retrospective amendment in law cannot charge the tax withholding liability with retrospective effect unless such services were rendered in India." 2. The facts giving rise to the present case of the assessee are that the case of the assessee was re-opened for assessment and the assessment was framed u/s 147 of the Income Tax Act, 1961 ("the Act") vide order dated 26.03.2014. While framing the assessment, the Assessing Officer did not accept the explanation offered by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Coordination fee was not taxable on the ground that the assessee company did not have permanent establishment in India. He further placed reliance on the decision of the Tribunal rendered in the case of M/s. Virola International vide ITA No.256/Agr/2013 for Assessment Year 2008-09. He further placed reliance on the judgement of High Court of Karnataka rendered in the case of M/s. Jindal Thermal Power Company ltd. vide ITA No.3022/2005 to 3025/2005. 6. On the contrary, Ld. DR opposed these submissions and supported the order of authorities below. 7. We have heard the rival contentions and perused the material available on record. We find that Ld.CIT(A) has decided the issue in question by observing as under:- {4.3.1}. "I have considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the A.O has also given a number of judgments and also analysed the nature of services rendered which entails the payment on account of Global Account Co-ordination Cost. I have also taken into account the rationale of Hon'ble ITAT judgment in the appellant's own case on similar issue for A. Y:2007-08. I have also considered the fact that the services rendered by the parent company does come under the purview of technical services if we look at the multilateral agreement. The relevant part about the scope the arrangements as per agreement is reproduced in the earlier para. Therefore, the payment comes under the purview of section 195 of the Act particularly after insertion of the following provision which is applicable from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, know-how or processes or consists of the development and transfer of a technical plan or technical design. Therefore, taking into account factual matrix of the case, it is my considered view that the A.O is justified in disallowing the payment as it had attracted provision of section 195 of the Act which the appellant company had failed to deduct tax at source. Accordingly, the disallowance of Rs. 57,38,948/- on account of Global Account Coordination Cost under section 4O(a)(i) of the Act is upheld. Appellant's ground of appeal is dismissed." 8. From the above, we find that the Ld.CIT(A) has relied upon the amendment in the statute. However, the Co-ordinate Bench of this Tribunal after having considered the amendment held in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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