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Engineering Analysis Centre Of ... vs The Commissioner Of Income Tax on 2 March, 2021

12. The aforesaid Order of the Tribunal (para 6.2) had followed the judgment of Hon'ble Apex Court in the case of Engineering Analysis Centre of Excellence Pvt. Ltd., Vs. CIT (supra) and held that reimbursement of computer and hardware maintenance from entity in India cannot be FTS/FIS. Since the facts of instant case and the facts considered by Tribunal for Assessment Year 2019-20 in assessee's own case are identical, we allow ground 7 and its sub-grounds. It is ordered accordingly.
Supreme Court of India Cites 167 - Cited by 1029 - R F Nariman - Full Document

The Commr Of Income Tax vs M/S De Beers India Minerals Pvt Ltd on 15 March, 2012

4.5 The ld. A.R. submitted that while the Assessing Officer held the above to be FTS, the ld. CIT(A) held the receipts to be in the nature of royalty. Under the DTAA, in order for a payment to be in the nature of fees for technical services, the services ought to 'make available' technical knowledge, experience, skill, know-how or processes, or consists of the development and transfer of a technical plan or technical design. Technology will be considered 'make available' when the person acquiring the service is enabled to apply the technology without depending on the provider. He placed reliance in this regard on the decision of the Hon'ble High Court of Karnataka in the case of CIT v. De Beers India Minerals (P.) Ltd. (reported in [2012] 21 taxmann.com 214 (Karnataka) - para 22. In the present case, the mandatory precondition of 'make available' is not satisfied in any of the aforesaid services, and therefore the payments are not in the nature of fees for technical service. In view of the above, he submitted that the reimbursements received from BY India is not taxable in India either under the Act or under the DTAA.
Karnataka High Court Cites 1 - Cited by 152 - Full Document
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