TMI Blog2023 (4) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... extent covered under the applicable categories contained in Hon'ble Supreme Court decision. DRP held that there is no dispute regarding the fact that the assessee does not have a permanent establishment in India. Accordingly, such receipts will constitute business income under Article 7 of the DTAA in line with the above-mentioned decision of Hon ble Supreme Court and will not be taxable in India in the absence of PE. Receipts on account of provision of other related services - The services are in respect of training programme and updations in connection with utilization of the software PRIME. Hence, we hold that when software itself is not taxable, the training and the related activities concerned with utilization and installation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been passed without giving sufficient opportunity to the appellant. 3. On the facts and circumstances of the case and in law, the Ld. AO has grossly erred in passing the final assessment order without giving the cognizance to the directions passed by the Ld. DRP and accordingly, the final assessment order is bad in law. 4. On the facts and in the circumstances of the case and in law, Ld. AO has erred in alleging that receipts in the nature of software license fee amounting to Rs 5,21,17,082 is taxable as Fees for Technical Services (FTS ) as per the Act and also as per the provisions of India-UK Double Taxation Avoidance Agreement ( DTAA ). 4.1 In doing so, the Ld. AO has erred in not following the directions of Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee M/s TSYS Card Tech Ltd. Ltd is a company. Assessee is engaged in the business of providing information technology related services to financial payments industry. During the subject AY, the assessee had earned revenue from Indian Customer primarily for rendition of software license (referred to as PRIME) and provision of software related services including implementation services, enhancement services, annual maintenance services and consultancy services as per the request of the Customers. 5. During the year the assessee received an amount of Rs. 5,21,17,082/- on account of software (Prime) License fee and fee for provision for other related parties of Rs. 12,01,30,877/- and receipt in nature of reimbursement of Rs. 7,24,821/- tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with and to the extent covered under the applicable categories contained in Hon'ble Supreme Court decision. The ld DRP held that there is no dispute regarding the fact that the assessee does not have a permanent establishment in India. Accordingly, such receipts will constitute business income under Article 7 of the DTAA in line with the above-mentioned decision of Hon ble Supreme Court and will not be taxable in India in the absence of PE. 9. However, the ld DRP held that the second set of receipts of Rs. 12,01,30,877 on account of provision of other related services, it is well settled that such services from a distinct set of receipts which need to be examined independently in terms of their taxability or otherwise under specific ..... X X X X Extracts X X X X X X X X Extracts X X X X
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