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TMI Blog2021 (12) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... en detailed description of the flow of services thereby substantiating that no human intervention was involved before the Assessing Officer. The assessee had entered into the agreements with the foreign group companies to promote sale of its products. The discounts were offered to increase the sales of certain category of products of the assessee and were in line with the regular business practices. These facts are identical to that of A.Y. 2011-12. No new or distinguishing facts were pointed out by the Ld. DR at the time of hearing. Hence, both the appeals of the assessee are allowed. - I.T.A. No. 2237/DEL/2018 I.T.A. No. 2236/DEL/2018 - - - Dated:- 17-11-2021 - SHRI R. K. PANDA ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultancy in the services rendered to Appellant by its non-resident group companies, by completely disregarding facts including that the provisioning of such standard facility did not involve any human intervention. 4. Ld. CIT(A) / AO have erred in law and on facts of the present case by holding that payments made for network and administrative support charges are characterized as FTS under section 9(1 )(vii) of the Act and therefore the appellant is liable to deduct tax at source under section 195 of the Act. 5. Ld. CIT(A) / AO have erred in law and on facts of the case by not considering all materials / submissions filed during the course of assessment/appellate proceedings. 6. Ld. CIT(A) has erred in law and on facts by n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding that the provisioning of such standard facility did not involve any human intervention. 4. The Ld. CIT(A) / AO have erred in law and on facts of the present case by holding that payments made for network and administrative support charges are characterised as FTS under section 9(l)(vii) of the Act and therefore the appellant is liable to deduct tax at source under section 195 of the Act. 5. The Ld. CIT(A) / AO have erred in law and on facts of the case by not considering all materials / submissions filed during the course of assessment / appellate proceedings. 6. The Ld. CIT(A) has erred in law and on facts of the case by not passing a speaking order. 7. The Ld. AO has erred by alleging that the Assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rections may be passed in the present assessment year as well. 6. The Ld. DR relied upon the assessment order and the order of the CIT(A), but submitted that the issues contested herein are identical to that of earlier years which was decided by the Tribunal and there are no new facts in the present assessment year. 7. We have heard both the parties and perused the material available on record. It is pertinent to note that the CIT(A) has relied upon the order of the CIT(A) in A.Y. 2011-12 thereby confirming the additions contested herein. The Tribunal in A.Y. 2011-12 observed and held as under: 14. We find that the services provided by the non-resident AEs to the Assessee are standard automated services. These services, as specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervention is an integral part of the Master Service Agreement which is completely misconceived. In fact, no reasons were provided by the Ld. CIT (A) as to how human intervention was an integral part of the Master Service Agreement. 22. The extracts of the agreement relied upon by the Ld. CIT(A) do not indicate that the IT support services were provided through human intervention. By their very nature and inherent characteristics, networking services over internet and intranet including mail services cannot be provided by human activities and intervention. Sections 4 - 8 of the services agreement extracted by the Ld. CIT(A) in his order does not demonstrate or show in any manner that human intervention was required for rendering the IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y domestic companies. The services/facility consists of internet proxy services and access charges. The services are standard services/facility provided to the assessee which do not require any human intervention. In fact, the assessee has given detailed description of the flow of services thereby substantiating that no human intervention was involved before the Assessing Officer. The assessee had entered into the agreements with the foreign group companies to promote sale of its products. The discounts were offered to increase the sales of certain category of products of the assessee and were in line with the regular business practices. These facts are identical to that of A.Y. 2011-12. No new or distinguishing facts were pointed out by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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