TMI Blog2023 (6) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee company which is based in USA. As argued that the results of such activities are made available to the other entities with ABB group, we may record the explanation given that the word made available used in portion of the agreement extracted of DRP s directions refers only to the results which the entities in the group companies may use and the same cannot be interpreted or equated to any other technical design or consultancy, the benefit of which the ABB India can derive in perpetuity. He is right in his submission because the services rendered by the assessee is project specific and terminates with submission of bid by the ABB India after making necessary changes or corrections in the bid based on the evaluation report. If ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the technical knowledge cannot provide these services? 2. Heard Shri K.V.Aravind, learned Senior Standing Counsel for the Revenue and Shri T.Suryanarayana, learned Senior Advocate for the assessee. 3. Shri Aravind for the Revenue submitted that ABB USA tenders technical and consultancy services to the assessee (M/s. ABB Inc.,), an Indian company; The AO [Assessing Officer] , based on the details furnished by the assessee, has rightly held that the services were made available and therefore, income in the hands of the assessee is deemed to have accrued in India; Para 6.7 of DRP s [Dispute Resolution Panel] order (Annexure-A) makes it clear that the results of the activities are made available for the benefit to A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for dismissal of this appeal. 6. We have carefully considered rival contentions and perused records. 7. The point of difference between the Revenue and the assessee is with regard to interpretation of Article 12(4) of the DTAA. In terms of Article 12, royalties and fees for included services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other state. At the same time, it may also be taxed in the Contracting State within the parameters mentioned in the clause 2(a) of Article 12. 8. The relevant portion of the Article 12 necessary for this case reads as follows: Article 12 4. For the purposes of this Article, fees for included services means payment of any ki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roaches the assessee company for risk evaluation of the proposed project and the prospective steps to be taken towards bidding process. Through a web based software RISK REVIEW , the Indian Company submits the details of the proposed project which include the name of the project, customer details, geography, end user, human resources, products and services to be rendered, time for execution etc. 12. Assessee s contention that the service rendered by the assessee is project based is not disputed by the Revenue. Thus, in substance, the Indian entity seeks the opinion of its one of the group companies based in USA to review the risk factor involved in the particular project. The DRP has also recorded that Minutes of Meeting is circula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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