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TMI Blog2024 (12) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... . AO')] in pursuance to the direction of learned Dispute Resolution Panel-2, New Delhi dated 22.02.2024 under section 144C(5) of the Act for the Assessment Years 2016-17 & 2017-18. 2. Both the appeals involve similar facts and issues. For facility of convenience, both were heard together and are being disposed of by a common order. ITA No.2237/Del/2024 is taken as lead case. 3. Brief facts of ITA No.2237/Del/2024 are that assessee M/s. Tungsten Network Ltd., a foreign company recipients for tax purposes in the UK, had received an amount of Rs. 1,46,96,822/- and Rs. 1,46,95,988/- from Genpact India Pvt. Ltd. During the A.Y. 2016-17 towards "services provided for converting raw data into e-form". The information indicated that the considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee/appellant also submitted that learned AO and Hon'ble DRP without considering the evidence and submissions erred in holding that the business receipts received by assessee is taxable as fees for technical services under Income Tax Act, 1961 as well as India - UK Double Taxation Avoidance Agreement ('DTAA') which is against the principle of law and agreements are liable to be quashed. 5.2 Learned Authorized Representative for the assessee/appellant also submitted that learned Assessing Officer and Hon'ble DRP erred in complying provision of section 9(1)(vii) of the Act, ignoring the exclusion clause of section 9(1)(vii)(b) of the Act where the appellant has not carried any business activity in India which is bad in law and liable to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se this cloud-based services facility to Genpact India who in turn has made payment of Rs. 3,31,98,980/- to the assessee. The income in hands of assessee is shown to be receipt of subscription fees. On 13th January, 2009, the assessee's Hungarian PE entered into a Master Services Agreement with Genpact International Inc., an US Company. The Master Service Agreement granted the assessee the authority to assign or sub-contract the powers and obligations of the agreement to any affiliate of Genpact. Consequently, Tungsten entered into a statement of work ("SOW") with Genpact India Pvt. Ltd. to provide an exclusive e-invoicing portal license. This license enables the generation of e-invoices for a specific customer of Genpact India, Glaxo smith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act and under the provisions of India-UK DTAA also. Since, all the objections of DRP were rejected the assessment order was passed. 10. Hon'ble Supreme Court in the case of Kotak Securities Ltd. reported in 383 ITR 1 (SC) has observed as under: "However, it cannot be lost sight of that modern day scientific and technological developments may tend to blur the specific human element in an otherwise fully automated process by which such services may be provided. The search for a more effective basis, therefore, must be made" 11. In GVK Industries Ltd. [2015] 371 ITR 453 (SC), the Apex Court held that terms managerial, technical and consultancy are not defined anywhere in the Income-tax Act, 1961. In the absence of definition und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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