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TMI Blog2022 (12) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... atter of an order passed by Ld. Assessing Officer [AO] u/s.201(1) / 1(A) of the Act on 28-06-2016. The grounds taken by the assessee are as under: 1. The order of the Commissioner of Income Tax (Appeals) ["CIT(A)"] is contrary to law, facts and circumstances of the case. 2. Remittances made towards general training services treated as Fees or Technical Services (FTS). 2.1 The CIT(A) erred in confirming the order of the AO treating the Appellant as "assessee in default" under section 201 of the Act in respect of the remittances made to the non-resident Standard Chartered Bank (SCB), Singapore. 2.2 The CIT(A) ought to have appreciated that the remittances made to the nonresident SCB, Singapore were not taxable in India and as such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t taxable as "Fees for Technical Services" as per the Double Taxation Avoidance Agreement. 3. The Appellant prays that directions be given to grant all such relief arising from the grounds of appeal mentioned supra as also all consequential relief thereto. 4. The Appellant craves leave to add, alter, amend, substitute, rescind, modify and / or withdraw in any manner whatsoever all or any of the foregoing grounds of appeal at or before the hearing of the appeal. As is evident, the sole substantive ground that fall for our consideration is whether the assessee could be held as 'assessee-in-default' for want of tax deduction at source (TDS) on certain payments. 2. The impugned demand against the assessee stem from the fact that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the assessee. 4. During appellate proceedings, the assessee, inter-alia, relied on the decision of Hon'ble Supreme Court in the case of GE India Technology Cen. (P) Ltd. vs. CIT (193 Taxman 234) which provide that tax withholding provisions would trigger only in case sum so paid was chargeable to tax in India. Since, the payment was not chargeable to tax, there was no obligation to deduct TDS. The assessee submitted that it was a general training which would not fit into the definition of managerial, technical or consultancy services as held in various decision of coordinate benches of Tribunal. Further, 'make available' clause would be satisfied only when the services results in transmitting technical knowledge so that the payee could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of DTAA, 'fees for technical services' include managerial, technical or consultancy services if such services are ancillary and subsidiary to the application or enjoyment of the right, property or information or it make available technical knowledge, experience, skill, know-how or processes, which enables the person acquiring the services to apply the technology contained therein or it consist of the development and transfer of a technical plan or technical design but excludes any service that does not enable the person acquiring the service to apply the technology contained therein. We find that the services as availed by the assessee is covered in none of these clauses. Therefore, the assessee could not be obligated to deduct TDS on the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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