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TMI Blog2019 (7) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... services has also been deleted by holding that the same is not includible in the total income of the assessee either as Royalty or Fees for technical services. Thus, it is seen that both the additions made in the assessment order stand deleted. Since the second addition, forming bedrock of the extant penalty, does not survive anymore, there remains no question of any penalty thereon. As such, we uphold the impugned order deleting the penalty. Fees for technical services (FTS) - reimbursement received by the assessee from Faurecia Technology Center India Pvt. Ltd. towards part of salary paid by it to the expatriate which was treated by the AO as and included in the total income - HELD THAT:- This ground are similar to those of the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Naresh Kumar For the Respondent : Shri Avadhesh Kumar ORDER PER R.S.SYAL, VP : This batch of three appeals by the two different but connected assessees involve Assessment years 2011-12 and 2012-13. Since some common issues are raised in these appeals, we are, therefore, proceedings to dispose them off by this consolidated order for the sake of convenience. 2. ITA No.2333/PUN/2016 is an appeal by the Revenue in the case of Faurecia Automotive Holding against the order passed by the ld. CIT(A)-13, Pune dated 07-07-2016 deleting penalty of ₹ 26,67,220/- imposed by the Assessing Officer u/s.271(1)(c) r.w.s. 144C(13) of the Income-tax Act, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of any penalty thereon. As such, we uphold the impugned order deleting the penalty. 5. In the result, the appeal is dismissed. 6. ITA No.804/PUN/2016 is an appeal by M/s. Faurecia Automotive Holding in relation to the A.Y. 2012-13. 7. First ground of this appeal is against reimbursement of ₹ 88,64,192/- received by the assessee from Faurecia Technology Center India Pvt. Ltd. towards part of salary paid by it to the expatriate Mr. Franck Euvrard in France, which was treated by the AO as Fees for technical services (FTS) and included in the total income. 8. Having heard both the sides and gone through the relevant material on record, it is found as an admitted posi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r.w.s.147 r.w.s.144C(13) of the Income-tax Act, 1961 in relation to the A.Y. 2011-12. 14. The only issue pressed in this appeal is against treating income from providing IT support services taxed as Royalty as well as fees for technical services (FTS). 15. Briefly stated, the facts of the case are that the assessee, a tax resident of France, is part of Faurecia group of industries. During the year under consideration, it received a sum of ₹ 3,24,83,500/- from Indian entities for rendering IT support services, which was claimed as not chargeable to tax. The AO examined the nature of services and held the same to be income from Royalty/FTS. He, therefore, added ₹ 3,24,83,500/- in the total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grate of current applications from project phase to delivery production. Secondly, the service provider gives technical support , which includes local IT support to users on site to order, change or upgrate PC or local applications, central support with helpdesk for applications and infrastructure issues, core competence centres for dedicated applications. Thirdly, the service studies adapts the information systems to meet the users' needs in the respect of the regulations and the Faurecia Core Procedures (FCP) on the following areas: legal evolutions, new organisations, new perimeters, final customers' needs, Faurecia Group's needs, IT projects (applications, infrastructure). ..... X X X X Extracts X X X X X X X X Extracts X X X X
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