2010 (6) TMI 830 - AT - Income Tax

Summary

Issues involved:
The judgment involves the interpretation of tax liability u/s India-US Double Taxation Avoidance Agreement (DTAA) for payments made by an Indian branch to a US-based entity for services rendered.

Summary:
The Appellate Tribunal ITAT Mumbai heard multiple appeals by the Revenue against the CIT(A) orders for the assessment year 2003-04. The main issue was whether the payments made by the Indian Branch to a US-based entity constituted 'fees for included services' u/s Article 12(4) of the India-US Treaty and were taxable in India. The assessee argued that the income should be treated as 'business profits' u/s Article 7 and not taxable in India due to the absence of a Permanent Establishment (PE) in India. The CIT(A) ruled in favor of the assessee, citing precedent cases. The Revenue appealed, but the Tribunal upheld the CIT(A) decision based on consistent precedent in favor of the assessee. The Tribunal dismissed the Revenue's appeals, stating that the facts were similar to previous cases and there were no distinguishable features presented by the Revenue. Consequently, all appeals filed by the Revenue were dismissed.