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TMI Blog2021 (2) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... t logistic Support Services where in the nature of FIS and make available technical knowledge, experience, skill, knowhow in terms of Article 12(4)(v) of the DTAA - HELD THAT:- The assessee during the assessment year 2011-12 has categorically mentioned that the nature of these operations is purely logistic support provided by the assessee for shipment of transport of goods perform outside in India and the contract is entered between expertise international India Pvt. Ltd. and the customers i.e. at the consigner sent in the case of expert of Consignment from India to overseas countries found USA and between the assessee and the customer that is at the consignment end in the case of import of consignment from other countries i.e. USA to India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Suchitra Kamble, JM This appeal is filed by the assessee against the order dated 15/01/2016 passed under Section 143(3) read with Section 144C of the Income Tax Act, 1961 passed by DCIT, Circle 1(2)(2) New Delhi, for Assessment Year 2010-11. 2. The grounds of appeal are as under:- The Appellant respectfully submits:- 1. That on the facts and in the circumstances of the case and in law, the order passed under section 144C of the Income-tax Act, 1961 ("the Act") by the Learned Assessing Officer ("Ld. AO") is erroneous and bad in law as well as in facts. 2. That the Ld. AO and Ld. Dispute Resolution Panel ('Ld. DRP') on the facts and in the circumstances of the case, has erred in holding that the cost all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluded consultation or forwarding of Air & Ocean freight. Additionally the group also provides services related to distribution management vendor consolidation Cargo Insurance, purchase order management and Customise logistics information and value added Services. The customers of the Group include retailers and wholesalers, and electronics and manufacturing companies around the world. The operations of the Group span over United States, North America, Far East, India, Europe, Australia, New Zealand, Latin America, and the Middle Eastern countries. The assessee, incorporated in USA, operates in three primary segments: airfreight, ocean freight & ocean services, and customs brokerage and other services. The assessee provides similar services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reimbursement of Global Account Management Expenses 2,46,73,043/- 5 Sale of consumables 10,08,768/- 6 Cost reimbursement received 76,70,102/- 7 Lease line charges received 10,90,173/- Out of the above receipts, the assessee has declared the royalty income in its return of income. Further, the assessee was asked to show case as to why the International Freight Logistic Services and Reimbursement of Global Account Management Expenses would not constitute Fee for Technical Services as per the section 9(1)(vii) of the Income-tax Act, 1961 and India-USA tax treaty. Out of the above receipts, the assessee filed detailed reply on 25/02/2015. The Assessing Officer specifically mentioned in Para 3 that the contentions of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the terms and conditions of the agreement. But in the present Assessment Year i.e. 2011-12, the agreement was considered by the DRP and it is very much applicable in the present assessment year regarding addition on account of releasing of GAM charges and addition on account of cost allocation of international flight logistic support services. 6. We have heard both the parties and perused all the relevant material available on record. As regards Ground No. 2, the Assessing Officer held that the services to the managerial/consultancy has to be considered in respect of fee for technical services/fee for included services in terms of Section 9(1)(vii) of the Income Tax Act, read with Article 12(5) of the Double Taxation Avoidance Agreement. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Managerial/Consultancy or Technical Services. Thus, the payment towards the same cannot be treated as technical Services. The Support Services are very much of a general services in nature and does not require any Managerial/Technical or Consultancy Expertise. The assessee during the assessment year 2011-12 has categorically mentioned that the nature of these operations is purely logistic support provided by the assessee for shipment of transport of goods perform outside in India and the contract is entered between expertise international India Pvt. Ltd. and the customers i.e. at the consigner sent in the case of expert of Consignment from India to overseas countries found USA and between the assessee and the customer that is at the consig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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