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TMI Blog2016 (3) TMI 1473X X X X Extracts X X X X X X X X Extracts X X X X ..... come to a conclusion as to whether the consideration received by the assessee company would fall within the meaning of Royalty or Fees for included services , even though there are plethora of case laws explaining both the terms. Hence, we are of the view that the tax authorities have not examined the impugned issue in proper perspective, i.e., the matter has not been examined in the context of Indo-US treaty by considering the meaning of various terms used therein. As stated earlier, the meaning to be ascribed to various terms used in the treaty has been the bone of contention in various case laws and we notice that the tax authorities have not considered the applicable case laws. Impugned matter requires fresh examination at the end of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are stated in brief. The assessee herein is a tax resident of USA. It belongs to AC Nielson Group, which is one of the world s leading business, management market research companies. The AC Neilson group also offers other marketing information services tailored to the needs of industries like pharmaceuticals, financial services, telecommunications etc. The AC Neilson group is represented in India through its two legal entities viz., M/s AC Nielson Org-Marg Private Ltd ( ACNOM ) for customized research services retail measurement services and M/s AC Nielson Research Services Pvt Ltd ( ACNRS ) for customized market research services. The assessee herein entered into a General Service Agreement (GSA) in the year 2003 with both the Indian entit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e any mark up in respect of third party expenses. Thus, the mark up of 10% is charged in respect of costs incurred by the assessee company only. 3. For all the three years the assessee claimed that the amount received by it from the Indian entities was not taxable. However, the AO did not agree with the contention of the assessee and held that impugned receipts were taxable as royalty within the meaning of section 9(1) (vi)of the Act as well as Article-12 of the Indo-US DTAA. In the appellate proceedings the FAA held that consideration received by the assessee in all the three years was in nature of royalty as well as fee for included service. The Tribunal decided the issue as under :- 6. We have heard the rival contentions and perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue in proper perspective, i.e., the matter has not been examined in the context of Indo-US treaty by considering the meaning of various terms used therein. As stated earlier, the meaning to be ascribed to various terms used in the treaty has been the bone of contention in various case laws and we notice that the tax authorities have not considered the applicable case laws. Under these circumstances, we are of the view that the impugned matter requires fresh examination at the end of the assessing officer. When we expressed our view to both the parties, they also accepted the fact that the matter has not been examined by the tax authorities in proper perspective and accordingly agreed that the matter requires fresh consideration at the end o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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