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TMI Blog2024 (11) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO to delete the addition of Rs. 9,06,53,035/- made by AO on account of expenditure for IT service charges u/s 40(a)(ia) of the IT Act, 1961 treating such expense incurred by the assessee company as fees for technical services/royalty? 2. The Appellant prays that the order of the Ld. CIT(A) on the above ground be set aside and that of the Assessing Officer be restored. 3. The appellant craves leave to amend, or amend, or alter any ground or add a new ground, which may be necessary." 3. The facts of the case, in brief, are that the assessee is a domestic company and is engaged in the business of shipping agents. The original return of income was filed on 28.11.2014 declaring total income of Rs. 8,74,84,750/-. Thereafter, the return w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order dated 14.12.2023 allowed the appeal of the assessee, by following the order passed by the ITAT, Pune Benches, Pune in assessee's own case for the assessment year 2012-13 dated 02.01.2020. 5. Being aggrieved with the above decision of deletion of Rs. 9,06,53,035/- & Rs. 43,91,965/- by Ld. CIT(A), the Revenue is in appeal before this Tribunal and has only challenged the deletion of Rs. 9,06,53,035/- which was disallowed by the AO u/s 40(a)(ia) of the IT Act. 6. During the course of hearing, ld. DR submitted before us that the order passed by ld. CIT(A) is not correct and requested to treat the payment of Rs. 9,06,53,035/- as fees for technical services, liable for TDS and consequently requested to set-aside the order passed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 12(4) of the DTAA with Portuguese. He held the case of the assessee to be falling under clause (a). Thus it is seen that the ld. CIT(A) admitted that the clause (b) is not attracted to the facts of the instant case because CMA CGM, France did not make available any technical knowledge, experience or skill etc. to the assessee. In so far as clause (a) is concerned, it talks of any payment for services which are ancillary and subsidiary to the application or enjoyment of the right, property or information for which payment described in paragraph 3 is received. It is only if the services ancillary to the enjoyment of right, property or information as per para 3 are availed that they will fall within the ambit of 'fees for included services'. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2013-14 in ITA No.1454/PUN/2023 wherein identical additions were deleted. Therefore, respectfully following both the above decisions of the Co-ordinate Bench of the Tribunal passed in the case of assessee itself for the assessment years 2012-13, 2013-14, 2015-16 and 2017-18 respectively, and in the absence of any change in facts & circumstances of the present case, we are of the considered opinion that the order passed by LD CIT(A) deleting the disallowance of Rs. 9,06,53,035/- made u/s 40(a)(ia) of the IT Act is correct & consequently does not deserve any interference from our side. Thus, the grounds raised by the Revenue fail & the appeal is dismissed. 10. In the result, the appeal filed by the Revenue is dismissed. Order pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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