TMI Blog2023 (7) TMI 1049X X X X Extracts X X X X X X X X Extracts X X X X ..... r or human intervention is essential requirement for treating the rendering of services as technical. If any technology or a process has been put to operation automatically, wherein it operates without much human interference or intervention, then such technology per-se cannot be held as rendering of technical services by human skills. As decided in Alibaba.Com Singapore E-Commerce Pvt. Ltd. [ 2023 (7) TMI 134 - BOMBAY HIGH COURT ] If any technology or a process has been put to operation automatically, wherein it operates without much human interface or intervention, then such technology per se cannot be held as rendering of technical services by human skills. Where there is a standard facility made available for public at large, witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia- U.K. DTAA? c) Whether on the facts and the circumstances of the case and in law, Hon ble Tribunal has erred in applying decision of ITAT Mumbai in the case of Kotak Mahindra Primus Limited, Whereas Madras High Court in the case of Verizon Communications Singapore Pte Ltd. Reported in [2014] 361 ITR 575, in similar situation has held such payment to be covered under definition of Royalty? 2. The impugned order of the Income Tax Appellate Tribunal ( ITAT ) on 9th November 2016 for Assessment Year ( AY ) 2010-11 came to be passed in an Appeal that Respondent-Assessee had filed against order dated 28th March 2014 passed by Commissioner of Income Tax (Appeals) [ CIT(A) ], Mumbai for quantum of Assessment passed under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used by Respondent-Assessee in providing such services. Hence, Respondent-Assessee cannot be said to make available connectivity services to its Indian customers as per Article 13 of the DTAA. Even the amount received was in the form of service charges payment. Moreover, there was no human intervention and in the absence of human intervention payments cannot be characterised as fees for technical services even under Section 9(1)(vi) of the Act. 5. The CIT(A) confirmed the finding of the AO relying on his own order passed for AY 2009-10. This order of CIT(A) was reversed by ITAT. ITAT in the impugned order has relied on its own finding in the case of Respondent-Assessee for AY 2009-10 and there is not even a suggestion that the facts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he technology in the sense that recipient of service is enabled to perform the same service without recourse to the service provider. In order to be covered by the provisions of Article 13 of the DTAA not only the services should be of technical in nature but the same should result in making the technology available to the persons receiving the technical services. Tribunal has correctly held that merely because the provision of the service may require technical input by the person providing the service it could not be said that technical knowledge, skills etc. are made available to the person purchasing the service. 7. Therefore, on facts the Tribunal has come to a conclusion that the Revenue earned by Petitioner on this ground was only ..... X X X X Extracts X X X X X X X X Extracts X X X X
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