TMI Blog2023 (5) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... tly been decided in favour of the assessee in preceding AYs. Addition on account of sale of logistic services treating the same as FTS under the Act as well as India-USA DTAA - The Coordinate Bench of the Tribunal in its decision [ 2022 (11) TMI 125 - ITAT DELHI] for AY 2018-19 where held that the amount received by the assessee from freight/logistic support services cannot be treated as FTS/FIS either under the Act or under treaty provisions. Accordingly, the addition was deleted. Identical view was expressed by the Tribunal while deciding the appeals for subsequent assessment years, as noted above. In fact, though, the departmental authorities were conscious of the fact that the Tribunal has decided the issue in favour of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Department : Shri Vizay Vasanta, CIT- DR ORDER PER ASTHA CHANDRA, JM: The appeal filed by the assessee is directed against the final assessment order dated 12.01.2023 passed under section 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 (the Act ) in pursuance to the directions of Ld. Dispute Resolution Panel ( DRP ) pertaining to the Assessment Year ( AY ) 2020-21. 2. The assessee has raised the following grounds of appeal:- 1 That on the facts and in the circumstances of the case and in law, the order dated 17 January, 2023 passed by the Assessing Officer ( AO ) under section 143(3), r.w.s 144C(13) of the Income-tax Act, 1961 ( the Act ) is erroneous and bad in law as well as in facts. 2. That the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y proceedings under section 270A of the Act mechanically by alleging that the Appellant has furnished incorrect particulars of income without recording any adequate satisfaction for such initiation. 3. Briefly stated the facts are that the assessee is a non-resident company headquartered in Seattle, Washington and is engaged in the business of providing global freight logistics services worldwide. It carries out operations in three primary segments, namely airfreight, ocean freight and ocean services, customs brokerage and import services. The nature of services primarily includes consolidation or forwarding of air and ocean freight. Additionally, these services include distribution management, vendor consolidation, cargo insurance, pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the decision of the Co-ordinate Bench of the Tribunal in assessee s own case for the assessment years 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16, 2017-18 and 2018-19. He submitted that the issues in question are no longer res-integra and has consistently been decided in favour of the assessee in preceding AYs. He further submitted that there is no change either in the factual or legal position relating to the disputed issues presently under consideration in AY 2020-21. The Ld. DR fairly conceded to the submission of the Ld. AR. 6. We have heard the Ld. Representative of the parties and perused the material on record. The Revenue has not disputed the fact that the Coordinate Bench of the Tribunal for the preceding AY(s) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, the addition was deleted. Identical view was expressed by the Tribunal while deciding the appeals for subsequent assessment years, as noted above. In fact, though, the departmental authorities were conscious of the fact that the Tribunal has decided the issue in favour of the assessee in earlier assessment years, however, for the purpose of keeping the issue alive, a contrary decision has been taken. There being no change either in the factual or legal position relating to the disputed issue in the impugned assessment year, respectfully following the consistent view of the Tribunal in assessee s own case in the preceding assessment years, as mentioned above, we delete the addition made by the assessing officer. This ground is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t while deciding identical issue in assessee s own case in assessment years 2012-13 to 2015-16, the Tribunal in ITA No.1904/Del/2017 and Ors. Dated 05.01.2022 has held that lease line charges are not in the nature of royalty. The same view was reiterated by the Tribunal while deciding the issue in assessment year 2017-18. It is further relevant to observe, while considering the allowability of payment made towards lease line charges at the hands of assessee s payer, the assessing officer had held that the payment made is in the nature of royalty, hence, the assessee was required to deduct tax at source. Since, the assessee has not done so, the assessing officer made disallowance under section 40(a)(i) of the Act. However, while deciding the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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