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TMI Blog2022 (10) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... in the nature of managerial/technical/consultancy services, hence, will fall within the scope and ambit of FTS/FIS as per the provisions of domestic law as well as under the India-USA DTAA. Notably, while considering the taxability of the corresponding receipts made at the hands of the AE viz. Everest Global Inc. in assessment years 2010-11 to 2012-13, the Tribunal [ 2022 (4) TMI 1062 - ITAT DELHI] has held that they are not in the nature of FTS/FIS under Article 12(4) of the India-USA DTAA. The services received by the assessee are general managerial services, hence, do not qualify the test of technical/consultancy services to satisfy the definition of FIS under Article 12(4) of the Tax Treaty. Thus, considering the fact that while con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of various amounts made under Section 40(a)(i) of the Income-Tax Act, 1961. 3. Briefly, the facts, which are more or less common in all these appeals are, the assessee is a resident corporate entity engaged in the business of providing strategic advisory services on outsourcing. It also provides independent research on outsourcing. 4. In course of assessment proceedings, the assessing officer noticed that in the assessment years under dispute, assessee had paid certain amounts to its overseas associated enterprises viz. Everest Global Inc. towards management fee. When asked to explain, assessee submitted that the amount was paid towards use of manpower of sister concern in accepting third party projects abroad. Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee at the hands of the AE viz. Everest Global Inc., the assessing officer has treated it as FIS and added to the income of the AE. However, she submitted, while deciding the appeals filed by the AE in assessment years 2010-11 to 2012-13, the Tribunal has held that the payments received by the AE from the assessee are not in the nature of FIS under the provisions of India-USA DTAA. Thus, she submitted, once, the Tribunal has held that the payments received by the AE from the assessee are not taxable in India, there was no requirement for the assessee to deduct tax at source under Section 195(1) of the Act, while making payments of management fee. 7. Learned Departmental Representative strongly relied upon the observations of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort d. User ID and passwords e. Remote access f. System/antivirus g. Intranet h. Inter-site communication links, email, voice mail, etc. i. Standard computer platform j. New Hardware and software k. Training on IT resources l. Licenses and compliance m. Computer and phone networks 6. Training a. Global training conference b. Monthly training sessions c. Ad hoc training as required 7. Legal a. Contract review b. Litigation management c. Other legal services as required. 10. Undisputedly, assessee is availing such services from the AE from assessment year 2010-11 onwards. 11. It is the case of the Revenue that the services rende ..... X X X X Extracts X X X X X X X X Extracts X X X X
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