2025 (2) TMI 719 - SCH - Income Tax

Income accrued in India - Benefit of DTAA between India and USA - rightful owner of the remittances - fees for technical service (FTS) - Payment for certification of Diamonds - as per HC 2023 (8) TMI 296 - GUJARAT HIGH COURT based on factual appreciation especially the condition in the customer service agreement the bank invoice and the Bank remittance advice a finding of fact has been arrived at that the assessee s case was protected under the India-USA DTAA and that mere rendering of services cannot be roped into FTS unless the person utilising the services is able to make use of the technical knowledge etc. Simple rendering of services as in the present case is not sufficient to qualify as FTS . HELD THAT - Having heard the learned Additional Solicitor General appearing for the petitioner and having gone through the materials on record it appears that the tax effect of the subject matter of the Special Leave Petition is falling below the threshold contained in the circular dated 22nd August 2019 of the Central Board of Indirect Taxes and Customs. Special Leave Petition is disposed of.

Summary

The Supreme Court, with Hon'ble Mr. Justice J.B. Pardiwala and Hon'ble Mr. Justice R. Mahadevan presiding, heard a case where the tax effect of the subject matter fell below the threshold outlined in a circular by the Central Board of Indirect Taxes and Customs. Consequently, the Special Leave Petition was disposed of, with any pending applications also being resolved.