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TMI Blog2022 (11) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... essment years, as noted above. Though, the departmental authorities were conscious of the fact that the Tribunal has decided the issue in favour of the assessee in earlier assessment years, however, for the purpose of keeping the issue alive, a contrary decision has been taken. There being no change either in the factual or legal position relating to the disputed issue in the impugned assessment year, respectfully following the consistent view of the Tribunal in assessee s own case in the preceding assessment years, as mentioned above, we delete the addition made by the assessing officer. This ground is allowed. Reimbursement of global account management charges by treating it as FTS/FIS - We find that this is a recurring issue betw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct can be made. Thus, in assessee s own case and the decision of the Hon'ble High Court in case of the payer, the addition made cannot be sustained. Accordingly, we delete it. This ground is allowed. - ITA No. 1464/Del/2022 - - - Dated:- 31-10-2022 - SHRI G. S. PANNU , PRESIDENT And SHRI SAKTIJIT DEY , JUDICIAL MEMBER Assessee by : Shri Rohan Khare Priyam Bhatnagar , Advs Department by : Shri Gangadhar Panda , CIT - DR ORDER PER SAKTIJIT DEY , JUDICIAL MEMBER : Captioned appeal by the assessee challenges the final assessment order dated 23.05.2022 passed under Section 143(3) read with section 144C(13) of the Income-Tax Act,1961 for the assessment year 2018- 19, in pursuance to the directions of learned Dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing officer, however, did not agree with the submissions of the assessee. Relying upon the decision taken by him in assessee s own case in preceding assessment years, the assessing officer held that the amount received by the assessee is in the nature of FTS/FIS under Section 9(1)(vii) of the Act and Article 12(5) of the tax treaty, respectively, hence, the amount is taxable in India. Accordingly, he framed a draft assessment order by adding back the amount to the income of the assessee. Against the draft assessment order, the assessee raised objections before learned Dispute Resolution Panel (DRP). However, relying upon their decision in assessee s own case in assessment year 2017-18, learned DRP upheld the addition. Accordingly, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8, the assessee has challenged the addition of an amount of Rs.6,22,40,433 representing reimbursement of global account management charges by treating it as FTS/FIS. While framing the draft assessment order, the assessing officer observed that the assessee is maintaining a team of employees to manage a set of global customers of the group having operation in many countries. He observed that global account managers have been appointed based on the customers location and global accounts managers manage global customer sales and act as a marketing interface. He observed, global accounts managers instruct and coach the local account teams under them and support the account team throughout the whole project. He observed, nature of services prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne charges as royalty under Section 9(1)(vi) and Article 12 of India-USA DTAA. As could be seen from the facts on record, referring to the amended provision of section 9(1)(vi) of the Act, the assessing officer held that the payment received by the assessee towards lease line charges comes within the term process , hence, is in the nature of royalty under Section 9(1)(vi) of the Act. Further, relying upon some judicial precedents, the assessing officer held that the amount is also taxable as royalty under India-USA DTAA. Accordingly, he added it to the income of the assessee. The addition made was upheld by learned DRP by following their directions in assessment year 2017-18. 12. Before us, learned counsels appearing for the respective ..... X X X X Extracts X X X X X X X X Extracts X X X X
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