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2016 (3) TMI 117 - ITAT MUMBAISection 44 BBB applicability to the remittance made to Atomstroyexport(ASE) - whether all the payments were in the nature of 'fees for technical services' that same were liable to tax in India? - Intergovernmental- Agreement - Held that:- Income-tax proceedings the doctrine of res judicata is not applicable but consistency and definiteness has to be maintained unless there is a manifest distinguishable feature. We find that the FAA, while passing orders in subsequent proceedings, brought any distinguishable feature on record. We are unable to endorse the view of the FAA that Intergovernmental Agreement should not be considered for deciding the issue. The Intergovermental Agreement was source of all subsequent agreements and it was entered in to by two Sovereign Countries. It cannot be brushed aside. If all the agreements are considered jointly it becomes clear that the orders of his predecessors were in accordance with the provisions of law. Similarly, the argument of the FAA with regard to introduction of section 44BB is not at all convincing. International transactions are governed by the DTAA. s. and Inter-govermental Agreements. Considering the above discussion, we are of the opinion that the appeals filed by the assessee have to be allowed. Therefore, revising the orders of the FAA, we decide the effective grounds of appeal in favour of the assessee.
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