TMI Blog2023 (4) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... for the present assessment year before us. We have also perused the termination clause where the agreement continues until and unless either of the parties wishes to terminate the agreement. Therefore, the genesis of entire transaction relating to the services is based on the same service agreement dated 3-1-2011. The Tribunal has given relief to the assessee for A.Y. 2011-12. Similarly, in assessee s own case for A.Y. 2012-13 [ 2019 (7) TMI 534 - ITAT PUNE] following the earlier order of the Tribunal for A.Y. 2011-12 [ 2019 (7) TMI 402 - ITAT PUNE] the appeal of the Revenue was dismissed. Thus such income is neither royalty nor FTS and therefore, not taxable either within the Act or within DTAA. D.R has not submitted any docume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e especially not considering the 'make available' clause in light of beneficial provisions of India-France tax DT AA read with India- UK DT AA. 3. Income from providing IT Support Services and Management Services considered taxable as Royalty 3.1 The Hon'ble DRP / Ld. AO has erred on facts and in law in treating the receipts from IT Support services and Management Services taxable as 'Royalty' as per the provisions of Section 9( I )(vi) of the Act and the provisions of DT AA between India and France . 4. Receipts from reimbursement of salary cost of expat (Mr. Jacques Milon) considered taxable as FTS. 4.1 The Hon'ble DRP / Ld. AO has erred on facts and in law in treating the receipts f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance. It had filed return of income on 10-02-2021 declaring total income at Rs. 38,21,890/- and exempt income at Rs. 51,12,39,933/-. The assessee is engaged in designing and building dashboards, doors, panels, sound proofing and insulation installations and other moulded plastic parts for passenger car interiors. It provides Information Technology support services and management services and others to M/s. Feurecia India Pvt. Ltd. its group entity in India. 3. From the draft assessment order, it emerges that after due verification, the income amounting to Rs. 51,14,18,048/- of the assessee was found to be chargeable to tax and a show cause notice was issued accordingly, requiring the assessee to explain why the receipt of Rs. 50,93,44,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O further held that the amount received from Indian AE towards services are taxable as royalty under clause 4 of Explanation 2 to section 9(1)(vi) of the Act also. That on the taxability of receipts as fees for technical services, the A.O starts his decision from para 4.2 onwards and at para 4.5.2 holds that the receipts for IT support fees and management services are in the nature of FTS which further make available within the meaning of Article 13 of DTAA between India and UK through protocol and therefore, taxable in India. 6. The D.R.P on this issue has given their findings at para 4.1 and therein they have observed that the current year s facts are similar to the earlier years and has been decided by the D.R.P in earlier years and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce agreement dated 3-1-2011. The ld. Counsel for the assessee submitted before us that the same agreement continues even for the present assessment year before us. We have also perused the termination clause where the agreement continues until and unless either of the parties wishes to terminate the agreement. Therefore, the genesis of entire transaction relating to the services is based on the same service agreement dated 3-1-2011. The Tribunal has given relief to the assessee for A.Y. 2011-12. Similarly, in assessee s own case for A.Y. 2012-13, order dated 08-07-2019 following the earlier order of the Tribunal for A.Y. 2011-12 in ITA No. 784/PUN/2015 (supra) the appeal of the Revenue was dismissed. That, with regard to the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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