9911796707
TMI Blog2024 (7) TMI 1588X X X X Extracts X X X X X X X X Extracts X X X X ..... as mutual concern having regard to the tests laid down by various courts. In view of the above finding of the learned Dispute Resolution Panel, which is not under challenge, there is no need for us to express any opinion on this aspect as revenue itself has accepted that assessee is a mutual concern. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ya World SLU, Spain (Accelya Spain) (categorized as Provision of EServices) d. Erred in considering the incorrect amount of Rs 2,81,04,800 as being the BSP Link charges collected by the Appellant for onward payment to Accelya Spain, instead of the correct amount of Rs 2,29,29,020. e. Erred in not accepting the contentions of the Appellant that the BSP Link charges collected by the Appellant for onward payment to Accelya Spain are in the nature of reimbursement of expenses/ cost, without any mark up, and hence, in the absence of any income element in respect of such charges, the same cannot be taxed as 'business profits' under Article 7 of the India Canada tax treaty. In relation to fees for ICH facility f. Erred in treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and ad-hoc basis. 03. As per ground no. 6 (c), it was the claim that assessee qualifies as the mutual association and hence, the membership fees received from the members should not be chargeable to tax having regard to the principle of mutuality under the Act. 04. The brief fact of the case shows that assessee is a corporation incorporated under the Special Act of Parliament of Canada and is a tax resident of Canada. The assessee holds a valid tax residency certificate. It is stated that it is a non-profit organization carrying out its activity for the benefit of all stakeholders of the World's Commercial Aviation Industry. Assessee has a branch office in India approved by the Reserve Bank of India. 05. Assessee filed its original retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n time i.e., dated 22/09/2017, whereas, in assessee's case for AY 2012-13, the directions are dated 17/11/2015. Taking into consideration entire facts, we deem it appropriate to restore this issue to the file of Assessing Officer for denovo examination in the light of aforementioned DRP directions in the case of assessee's India branch with respect to collection of membership fee only. In addition, the Assessing Officer shall also examine if the transaction (i.e., of membership fee) in the case of assessee is similar to that of Indian Branch in AY 2014-15; one to one nexus is established between collection of membership fee by the India Branch and transmission of same to the assessee; and the transaction is without any commercial el ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard to the principles of mutuality under the Act. The learned Authorized Representative, after discussing the concept of mutuality held that the learned Dispute Resolution Panel for A.Y. 2014-15, in assessee's own case has accepted that assessee is a mutual concern. Therefore, the Revenue has accepted ground no.6(c). The direction of the learned Dispute panel-1, Mumbai in objection no.157, dated 22nd September 2017, was produced before us, wherein this issue was decided as per paragraph no.7 at page no.20-25 of the direction. The learned Authorized Representative has categorically argued that assessee is a mutual concern. 012. The learned Departmental Representative vehemently opposed and stated that the surplus arising in the hands of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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