9911796707
TMI Blog2025 (1) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... 819/- for the A.Y under consideration as against NIL income returned by the assessee. 3. Representatives of both the sides were heard at length. Case records carefully perused. 4. At the very outset, the ld. counsel for the assessee vehemently submitted that this issue is squarely covered in favour of the assessee and against the Revenue by the decision of the co-ordinate bench of the Tribunal in assessee's own case. 5. The ld. DR relied on the orders of the authorities below. The ld DR, however did not controvert the factual situation as narrated by the ld counsel of the assessee. 6. The facts briefly stated is that the assessee company is incorporated under the laws of United States of America (USA) and qualifies as a tax resident of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts enlisted under section 13( 1)(a) of the Indian Copy right Act, 1957. Also, none of the rights as mentioned in Section 14(a) of the Indian Copyright Act, 1957 have been rested with the client by the assessee while rendering its services. Income from provision of the services rendered by the assessee cannot be characterized as royalty for use of copyright in the report as the client merely has the right to use the findings in the report for its own internal consumption. The client does not have any rights to publicly display, sell/ distribute, copy, edit, modify or undertake any other commercial exploitation of the said report. It is thus evident that the consideration received by the assessee under the terms of its agreement with its cli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation which involves imparting of any kind of commercial experience, skill or expertise. The validation report merely contains some personal details of candidates such as educational and professional details which would not amount to imparting of commercial experience etc. What is delivered to the client is validation report assuring its clients about the authenticity of information contained in the report on the basis the information collated in the process of validation. Hence it cannot tantamount to imparting of commercial experience. The screening report which is issued does not involve any transfer of commercial experience to the client or getting the right to use the experience. There is also no transfer of any skill or knowledge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi High Court in the case of the associate concern of the assessee in CIT V HireRight Ltd ITA 138 of 2024, on similar facts and circumstances confirmed the findings of the ITAT as follows: 5. In our considered opinion, the mere undertaking of background checks of an employee or the verification of testimonials cannot possibly be recognised as entailing the use of any technical knowledge, experience or skill as provided under Article 13(4) of the India-UK DTAA. The assessee is merely verifying disclosures and which activity cannot be recognised as being imbued with any technological characteristic. There is also a complete absence of a transfer of data or information which could be described as "technical" as the word is commonly unders ..... X X X X Extracts X X X X X X X X Extracts X X X X
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