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TMI Blog2024 (6) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Years, the similar issues are involved therefore, both the Appeals are heard together and dispose in this common order. 2. The Grounds taken by the assessee is as under: ITA No.552/Del/2022 (A.Y 2018-19) "1. That on the facts and in the circumstances of the case and in law, the Learned Assessing Officer (AO) erred in passing the impugned assessment order dated February 28, 2022 under section 143(3) read with section 144C(13) of the Income-tax Act, 1961 (Act') pursuant to the directions of the Hon'ble Dispute Resolution Panel-1 (hereinafter referred to as the Hon'ble DRP") in assessing the income of the Appellant at INR 3,27,11,930. 2 That on the facts and in the circumstances of the case and in law, the Learned AO erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 115A of the Act. 7. That on the facts and circumstances of the case and in law, the Learned AO erred in levying interest under section 234A, 234B and 234C of the Act. 8. That on the facts and circumstances of the case and in law, the Learned AO erred in initiating penalty proceedings under section 270A of the Act. The grounds of appeal herein above are independent and without prejudice to each other. The Appellant craves leave to alter, amend and/or withdraw the Ground(s) of Appeal herein or add any further grounds as may be considered necessary and to submit such statements, documents and papers as may be considered necessary either before or during the appeal hearing." ITA No.1815/Del/2022 (A.Y 2019-20) "1. That on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s "FTS' in the hands of the foreign company under the provisions of the Act. 5. That on the facts and circumstances of the case and in law, the Learned AO has erred in proposing an addition of INR 3,85,08,696/- by alleging that the Assessee is rendering plethora of services in complete ignorance of the fact that the Assessee has rendered services only in the nature of connectivity charges. 6. Without prejudice to the above, the Leaned AO erred in not granting credit of Taxes deducted at Source amounting to INR 42,05,150/-. 7. That on the facts and circumstances of the case and in law, the Learned AO erred in levying interest under section 234B of the Act. 8. That on the facts and circumstances of the case and in law, the Learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idance agreement during the concerned assessment year, the assessee was show caused as to why the total consideration received by it, amounting to Rs. 3,27,11,391/- during the concerned previous year, should not be held as Fee for Technical Services (FTS) under section 9(i)(vii) of the Income Tax Act, 1961 and added to its assessed income. 4. The assessee contended that the services are only in the nature of connectivity charges and are not in the nature of fees for technical services under the Provision of Section 9(i)(vii) of the Act. After considering the submission of the assessee, the Department of Revenue found no merit in the same and held that the international services rendered by the assessee will fall within the ambit of 'Consul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional services rendered by the assessee will fall within the ambit of 'technical' ' consultancy' or 'managerial' services and will qualify as fees for technical services u/s 9 (1)(vii) of the Act. The Departmental Representative, thus sought for dismissal of the Appeal filed by the assessee. 7. We have heard both the parties and perused the material available on record. During the year under consideration, the assessee received reimbursement of connectivity charges from Huawei Tele Communications (India) Company Pvt. ltd. (Huawei India) for provision of connectivity services for international communication. Admittedly, India and Hong Kong did not have any double taxation avoidance of the Agreement during the concerned Assessment Years. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Services conform to purchase contracts or order, (d). When requested, arrange for international transportation and/or appropriate insurance coverage, relating to shipment and delivery of the Products and Services to the Company and (e). Perform any and all other services and activities (including negotiations relating thereto and payment therefore) agreed to in writing by and between the company and the Service Provider are considered as the steps involved in processing the product purchased as per the purchasing service agreement and cannot be treated as other technical services which can be regarded at FTS u/s 9(1)(vii) of the Income Tax Act, 1961. The contention of the Department that, the Revenue has been treated considering the clauses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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