Shell Information Technology ... vs Asst. Commissioner Of Income ... on 28 May, 2018
29. In response, DR placed reliance on the observations made by the
Assessing Officer/DRP in respect of the aforesaid services. The DR submitted
that in the instant facts, the services are clearly technical in nature, under the
Indian domestic taxation laws as well as under the tax treaty law. The DR
submitted that in the instant facts, clearly, technology has been made available
to the recipient of services, and since both these service provider recipients are
working closely with each other over a period of time, there is a transmission
of knowledge during the course of rendering the aforesaid services. Further,
the argument of the Counsel for the assessee that the services qualify as
managerial services is also flawed, since looking into the nature of services
these are primarily technical/consultancy services and fall squarely within the
definition of fee for technical services under the India-Netherlands tax treaty.
Further, so far as the argument of services been rendered on a cost to cost basis
is concerned, the assessee has not been able to establish that there is no profit
element/income element during the course of rendering the services, even if
ITA Nos. 2788/Ahd/2017 & 09 others
Shell International BV vs. DCIT(International Taxation) & 09 others
Asst. Years -2009-10 to 2018-19