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TMI Blog2019 (7) TMI 1971X X X X Extracts X X X X X X X X Extracts X X X X ..... veal that the assessee has entered into employee secondment agreement with the Indian entity. Pursuant to Clause (6) of the agreement, the assessee was to be reimbursed with direct wages and benefit costs. The role and responsibilities of Mr. Anindya Ghosh, has been remunerated in the submissions dated 29/03/2016. The perusal of Form 16 12BA, as placed on record, would reveal that the Indian Entity has deducted due taxes against the aforesaid payments. The matter would go back to Ld. AO for re-appreciation of correct facts and re-adjudication of the matter in the light of submissions made by Ld. Sr. Counsel. Needless to add hat adequate opportunity of being heard shall be granted to the assessee to substantiate its stand. Appeal stands allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alary and other related costs received by it does not fall within the purview of the term 'fees for technical services' nor 'income' either under the Income-tax Act, 1961 nor under the provisions of the India-Canada DTAA and the stand taken by the Assessing Officer in this regard is misconceived, illegal, erroneous and incorrect. 1.3 The Appellant submits that the Assessing Officer be directed to delete the addition of Rs.1,49,96,676/- and to re-compute its total income accordingly. 2. Re: Levy of interest u/s. 234B of the Income tax Act, 1961: 2.1 The Assessing Officer has erred in levying interest u/s. 234B of the Income tax Act, 1961 on the Appellant 2.2 The Appellant submits that considering the facts and circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he attention was drawn to the fact that the work performed by assessee's employee namely Mr. Anindya Ghosh was more in the nature of managerial services and the same do not qualify as technical or consultancy services and therefore, do not fall within the ambit of fees for included services. 2.3 However, disregarding the same, Ld.AO opined that royalty paid to non-residents were taxable in India if sourced in India and the amount so received would be chargeable to tax in India within the meaning of Section 9(1)(vii) of the Act. Accordingly, the same was added to the income of the assessee in the draft assessment order. 3. Aggrieved, the assessee raised objections before Ld. DRP, by way of elaborate written submissions. The attention was d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm No.12BA and other documents as placed in the paper-book. The Ld. DR submitted that the matter may be remanded back for re-appreciation of correct facts by Ld. AO. 5. Upon careful consideration, we find substance in the submissions made by Ld. Sr. Counsel since the perusal of documents on record reveal that the assessee has entered into employee secondment agreement dated 01/01/2012 with the Indian entity. Pursuant to Clause (6) of the agreement, the assessee was to be reimbursed with direct wages and benefit costs. The role and responsibilities of Mr. Anindya Ghosh, has been remunerated in the submissions dated 29/03/2016. The perusal of Form 16 & 12BA, as placed on record, would reveal that the Indian Entity has deducted due taxes agai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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