TMI Blog2023 (3) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... es for technical service. Hence, it does not attract the provisions of section 195 of the Act so as to deduct TDS. Accordingly, we allow the grounds taken by the assessee . - IT ( IT ) A Nos. 7 & 8/Bang/2023 - - - Dated:- 20-2-2023 - SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K. , JUDICIAL MEMBER For the Appellant : Shri Siddhesh Chougule , A. R. For the Respondent : Dr. Sankar Ganesh K. , D. R. ORDER PER CHANDRA POOJARI , ACCOUNTANT MEMBER : These two appeals by assessee are directed against different orders of CIT(A) dated 9.11.2022 for the assessment years 2010-11 2013-14. There are common grounds in both these appeals except figures and hence, we reproduce grounds in IT(IT)A No.7/Bang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee company, HAL has made the payments to CGTM, France for providing technical assistance for Shakti Air Flight Test. The details of total payments made to CGTM, France is as shown under: (Amount in Euros) Activities Total amount Paid on 14-05-2009 Paid on 13-01-2010 Paid on 08-07-2008 Paid on 22-10-2012 Air intake survey 172493 43123.25 77480 51889.8 Engine bay FADEC Day oil cooling 52652 13163 39489 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany, any interest or any other sum chargeable under the provisions of the Act (not being the income chargeable under the head salaries) shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force. 2.5 It was observed that the payments made by the assessee company to CGTM, France for providing technical assistance was covered by the definition of FTS as defined in Section 9(l)(vii) of the Act. The sum paid by the assessee company to the CGTM, France is therefore chargeable to tax under the Act. As the Assessee Company had not complied with the provisions of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... France to the assessee shows that the technicians/engineers of CGTM carried out Air intake Survey relating to Air inlet distortion and installation losses. On the basis of test results, the assessee would look into various issues involving in the Shakti Engine and would carry out the requisite test for improving its engine. The fees paid towards the services in question here is purely towards the testing of Shakti Engines in order to identify the issues of Air inlet distortion and installation losses. The subsequent action of the assessee to carry out the improvement based on the test results given by CGTM France cannot be considered as a basis for make available services rendered by CGTM France to the assessee. Conducting the test and su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge or skills of the provider should be imparted to and absorbed by the receiver so that the receiver can deploy similar technology or techniques in the future without depending upon the provider. On facts, while the Dutch company performed the surveys using substantial technical skills, it has not made available the technical expertise in respect of such collection or processing of data to the assessees, which the assessee can apply independently and without assistance and undertake such survey independently. Consequently, the consideration is not assessable as fees for technical services In view of the above, we are of the considered opinion that fees paid by the assessee to CGTM France is not in the nature of fees for technical se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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