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TMI Blog2024 (8) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... nafter for short the "Act"). 2. Identical issues are involved in all these appeals and hence, they are taken together and disposed of by this common order for the sake of convenience. 3. We have heard the rival submissions and perused the material available on record. The assessee is a Public Limited company engaged in the business of providing IT/ ITES Services. The assessee is engaged in 3 lines of businesses i.e. software services (including engineering services), infrastructure services and business processing outsourcing (BPO). The case of the assessee was taken up for verification on the basis of information received from systems for verification of Form 15CA/ 15CB with respect of various remittances made to different subsidiary com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsidiary companies had categorically held that the remittance received by them from Indian company i.e. HCL Technologies Ltd (assessee herein) would not be taxable in India as per the provisions of the Income Tax Act as well as under the Double Taxation Avoidance Agreement (DTAA). 5. The ld CIT(A) in the appeal preferred against the order passed u/s 201(1)/ 201(1A) of the Act had indeed vehemently relied on the aforesaid Tribunal order dated 20.12.2023 which is reported in 158 Taxmann.com 45 and granted relief to the assessee by summarizing the findings of the Tribunal as under:- "Re: (1) HCL group entities operate as independent contractors; services not rendered by one entity to another but rather it is a case of revenue sharing arra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the customer. (Para no.22, Page No.45) 3. The Hon'ble Tribunal further noted that the assessing officer erred in holding that the services were rendered by foreign AEs to the Assessee and the said findings of the AO are contrary to the binding directions of the DRP in para 3.7 of the order wherein DRP held that major part of module development and writing of codes on software application is carried out by the Assessee and only some of it is being done by foreign AEs; that both the Assessee and foreign AEs are working together on the server of the client to develop the final product. (Para no.23, Page No.45-46) Re: (II) Assessing officer erred in cherry-picking statements recorded of employees of the Assessee during survey proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices, provided by the Assessee then such business of providing ons tu services is carried were to be accepted, even then h onsite services are performed outside India and are also delivered directly to the customers outside India. the Assessee as a corollary also delivered directly having avalled the services of the foreign AEs outside India in respecte fansidor the purpose of business of providing such onsite services to the customers outside India and therefore, in terms of first limb of the exception carved out in clause (b) of section 9(1)(vii) of the Act, the amount paid by the Assessee to the foreign AEs for the services utilized for business of onsite services carried on by the Assessee outside India would not be taxable in India. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held receipts of foreign AEs from the Assessee to be not taxable in India. It was further held that the receipts towards Infrastructure Services were also not chargeable to tax in India since no technical knowledge, experience, skill, knowhow or process is made available by the foreign AEs to the Assessee and in absence of Permanent Establishment of the foreign AEs in India, payments received by them could not be brought to tax in India even as per the applicable DTAA. (Para no.42, Page No.73) 5.5 Accordingly, in the light of the foregoing discussion and keeping in view of conclusive finding returned by the Hon'ble Delhi Bench of the Tribunal in the appellate order dated 20.12.2023 (in HCL Singapore PTE. Ltd. and Others vs. Asst. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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