2022 (9) TMI 1572 - AT - Income Tax

Accrual of income in India or not - Fee received by the assessee under the Centralized Services Agreement - whether FIS either under Article 12(4)(a) or 12(4)(b) of the India US Tax Treaty - HELD THAT - We find force in the contention of the Counsel because identical grievance have been heard and decided by this Tribunal 2022 (7) TMI 781 - ITAT DELHI in favour of the assessee and against the revenue wherein as held Centralized Service fee received by the assessee cannot be treated as FIS u/article 12(4)(a) OR 12(4)(b) of India- us DTAA due to failure of 'make available' condition, has made an unsuccessful attempt to bring it within the ambit of Article 12(4)(a) of the treaty - Decided in favour of assessee.

Summary

Issues:
Appeals against separate orders of CIT(A) in captioned assessment years.

Analysis:
The appeals by the assessee were against separate orders of the CIT(A) in the relevant assessment years. Identical issues were involved in the appeals, leading to them being heard together and disposed of by a common order for convenience and brevity. The grounds taken in the appeals were similar, specifically referring to ITA No.394/Del/2022 for the assessment year 2016-17. The Counsel for the assessee highlighted that a previous Tribunal decision had favored the assessee on identical grievances against the revenue, with no distinguishing decision brought forth by the DR in favor of the revenue.

The Tribunal, after considering the orders of the authorities below and the arguments presented, found merit in the Counsel's contention due to the previous Tribunal decision in favor of the assessee. Citing the relevant findings of the previous decision, the Tribunal directed the Assessing Officer to delete the addition, ultimately allowing the appeals of the assessee. The decision was announced in the open court on 15.09.2022.