TMI Blog2024 (2) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... t received are not in the nature of FTS/FIS either under the Act or under treaty provisions. Accordingly, the addition was deleted. Decided in favour of assessee. - N.K. Billaiya, Accountant Member And Ms. Astha Chandra, Judicial Member For the Assessee : Shri Deepak Chopra, Shri Rohan Khare And Priyam Bhatnagar, Advocate For the Department : Shri Vizay B. Vasanta, CIT-DR ORDER PER ASTHA CHANDRA, JM The appeal filed by the assessee is directed against the final assessment order dated 22.09.2023 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 ) 2021-22. 2. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other ground of appeal, the AO on the facts and in law, has erred in levying interest under section 234A of the Act. 6. That without prejudice to any other ground of appeal, the AO on the facts and in law, has erred in levying interest under section 234B of the Act. 7. That on the facts and in law, the AO has erred in initiating penalty 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 worl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order for AY 2010-11 and AY 2011-12 has provided complete relief to assessee by consolidated order passed for AY 2012-13 to AY 2015-16 and AY 2017-18 and separate order for AY 2018-19 and AY 2020-21. There is no change in factual and legal matrix in the case from AY 2020-21 and earlier years, as well as the argument of the AO in the DAO. The panel directs the AO to verify if the decisions of the Hon'ble ITAT relied upon by the assessee are based on identical facts and has been accepted by the revenue and no appeal has been filed. If the decision of the Hon'ble ITAT has been accepted by the Revenue, the AO shall follow the same. On the other hand if the decision has been challenged before higher appellate forum, in order to keep the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5-16 and 2017-18 (at page 324 to 345 of the Paper Book Volume II); for AY 2018-19 (at page 346-354 of the Paper Book Volume II) and for AY 2020-21 (at page 355 to 361 of the Paper Book Volume II). We note that the Co-ordinate Bench of the Tribunal in ITA No. 355/Del/2023 pertaining to AY 2020-21 has observed that all the issues under consideration in the present appeal have been consistently decided in favour of the assessee in assessee s own case in AY(s) 2010-11 to 2015-16, 2017-18 and 2018-19. 6.1 With respect to ground No. 2 relating to addition of Rs. 1,49,85,14,454/- made by the Ld. AO 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 it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsement of global account management charges received by the assessee treating the same as FTS under the Act as well as India-USA DTAA, the Coordinate Bench of the Tribunal in its decision dated 02.05.2023 in ITA No. 355/Del/2023 for AY 2020-21 in turn relying on its decision dated 31.10.2022 in ITA No. 1464/Del/2022 for AY 2018-19 observed and held as under:- 10. Having considered rival submissions, we find that this is a recurring issue between the parties continuing right from the assessment year 2010-11. On going through the relevant orders of the Tribunal in assessment years 2010-11 to 2015-16 and 2017-18, it is observed that the issue has been consistently decided in favour of the assessee in all these years, while holding that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 40(a)(i) of the Act. However, while deciding the issue in case of the payer, the Hon'ble High Court held that the payment made, being not in the nature of royalty, no disallowance under section 40(a)(i) of the Act can be made. Thus, in view of the decision of the Tribunal in assessee s own case and the decision of the Hon'ble High Court in case of the payer, the addition made cannot be sustained. Accordingly, we delete it. This ground is allowed. 7. It is, therefore, apparent that all the issues challenged by the assessee in ground Nos. 2, 3 and 4 relating to receipts on account of logistic support services, reimbursement of global account management charges and lease line charges respectively have been consistent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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