9911796707
TMI Blog2023 (12) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... directions of the DRP dated 26.08.2019 passed under section 144C(5) of the Act for the assessment year 2016-17. 2. The assessee in its appeal has raised the following substantive grounds:- "Considering management support services as Fees for Technical services : 2. On the facts and circumstances of the case and in law, the learned AO has erred in holding that the fee for management support services provided to Cameron Manufacturing (India) Private Limited ('CMIPL') is in the nature of Fee for Technical Services ('FTS') under section 9(1)(vii) of the Income-tax Act, 1961 ('Act') and as per Article 12(4) of the India-Singapore Double Taxation Avoidance Agreement ('DTAA') without appreciating that the of F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e receipts from Cameron Manufacturing India Pvt. Ltd. are not in the nature of FTS. Copy of the order is placed on record. The ld. Counsel further submits that as a matter of fact the Assessing Officer at page No. 3 para 5 stated that in the previous assessment years i.e. for the assessment years 2013-14 to 2015-16 the Assessing Officer has held that services provided by the assessee to Cameron Manufacturing India Pvt. Ltd. are taxable as fees for technical services and fall under the definition of FTS as per section 9(1)(vii) of the Act. The ld. Counsel further submits that the ld. DRP also in the directions stated that there is no change in facts and, therefore, they have followed their directions given for the assessment year 2013-14. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pport in the area of information technology, providing assistance with the purchase or lease of new hardware and software, support and management in the area of human resources etc. The assessee did not offer the receipts from the aforesaid activities pleading that, firstly, such services were provided from outside India and secondly, while providing such services the assessee has not made available any technical knowledge, knowhow, skill etc. to make it FTS. The Assessing Officer, however, did not accept assessee's claim and held that they are in the nature of FTS as the services rendered are of managerial and consultancy nature and secondly while rendering such services, the assessee has made available technical knowledge, skill etc. Lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is required to provide the following services: S. No. Particulars Description of service Remarks 1. International purchasing Assists in procurement of goods in International market. This includes reference to the vendors Management fees would not make available technical knowledge, experience, skill, knowhow or process to service receiver (CMI) 2. International marketing and sales Assists the group companies to identify potential business opportunities and customers for the products and services Management fees would not make available technical knowledge, experience, skill, knowhow or process to service receiver (CMI) 3. Accounting and finance Assistance in providing support in the field of accounting and finance and rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e condition that any consideration from services of managerial, technical or consultancy nature can be treated as FTS, if they make available technical knowledge, experience, skill, know-how or process, which enables the person acquiring the services to apply the technology contained therein. Though, the departmental authorities have made broad allegations that while rendering services the assessee has made available technical knowledge, experience etc., however, no material has been brought on record to establish such fact. The expression 'make available' if read in conjunction with, which enables the person acquiring the services to apply the technology contained therein', would mean that the recipient of service will be in a position to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to ground No. 4 of grounds of appeal the ld. Counsel for the assessee submits that the Assessing Officer erred in not granting TDS credit amounting to Rs. 9,74,418/- and a direction may be given by the Assessing Officer to grant credit for TDS. 8. The ld. DR has no objection. 9. On hearing both the sides we hereby direct the Assessing Officer to consider the plea of the assessee for granting credit for TDS in accordance with law. This ground is allowed for statistical purpose. 10. Ground Nos. 5 and 6 are in respect of charging interest under section 234B and initiating penalty proceedings under section 271(1)(c) of the Act which are consequential and premature and no need for adjudication at this stage. 11. In the result, appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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