9911796707
TMI Blog2025 (1) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... reement with its client is purely towards provision of background screening services and does not include any consideration for use or right to use any copyright or a literary, artistic or scientific work, patent, trademark, design, model, plan, secret formula, or process or information. Thus, the impugned receipts of the assessee from its clients in India cannot be regarded as 'Royalties' under the provisions of Article 13 of the India-UK DTAA. Support may be drawn by the decision of Engineering Analysis Centre of Excellence (P) Ltd.[ 2021 (3) TMI 138 - SUPREME COURT] . Also see [ 2024 (2) TMI 1491 - DELHI HIGH COURT] - Thus, no addition on account of Royalty is warranted in this case. Decided in favour of assessee. - Shri Vikas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is whether the amount received by the assessee amounting to Rs 2,66,69,104/- during the year under consideration on account of screening services provided to Indian clients are royalty or not under section 9(1)(vi) and article 12 of India-US tax treaty. 7. We have heard the rival submissions and have perused the relevant material on record. We have perused the Tribunal order and find that this issue is squarely covered in favour of the assessee and against the Revenue by an order of the co-ordinate bench in assessee s own case for Assessment Years 2019-20 and 2020-21 in ITA Nos. 373/DEL/2023 and 1884/DEL/2024 dated 06.09.2023. The relevant findings of the co-ordinate bench read as under: 12. As regards the impugned receipts being in the nat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mula, or process or information. Thus, the impugned receipts of the assessee from its clients in India cannot be regarded as 'Royalties' under the provisions of Article 13 of the India-UK DTAA. Support may be drawn by the decision of the Hon'ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P) Ltd. vs. CIT (2021) 125 taxmann.com 42 (S C)/432 ITR 471 (SC). 13. Further the assessee does not provide access to any database to its clients but only access to reports requisition by the client in electronic form. Provision of online access of the report to its client is limited to providing access to the specific report providing relevant facts for the concerned candidates capture d during the course of validat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kill of carrying out background screening services to its client. It is thus clear that there is no imparting of information concerning industrial, commercial or scientific experience by assessee when it issues the reports to its clients. 15. As regards the characterization of impugned receipts as FTS, in our view, the services rendered by the assessee do not involve any technical skill/knowledge or consultancy or make available any technical knowledge, experience, skill, know-how or processes to the clients. Assessee's role is restricted to the verification of information provide d by various candidates propose d to be hire d by its clients. It involves seeking information from various sources that is accessible on specific requests an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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