Centralized services outside technical services under Section 9 and Article 12, following binding precedent on the issue.

Centralized services were examined to determine whether they constituted technical services under Section 9 of the Income-tax Act, 1961 and Article 12 of the India-US DTAA. The Delhi High Court applied its earlier ruling in Sheraton International Inc., which had already held that similar centralized services fall outside the scope of technical services. Following that binding precedent, the court found no basis to adopt a different view, and the issue was decided in favour of the assessee and against the Revenue.

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Issues: Whether centralized services rendered by the assessee amounted to technical services under Section 9 of the Income-tax Act, 1961 and Article 12 of the India-US Double Taxation Avoidance Agreement.

Analysis: The question was covered by an earlier decision of the Court in Sheraton International Inc., which had already held that similar centralized services did not bring the receipts within the scope of technical services. Following that binding view, the Court found no basis to take a different view in the present appeal.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

Ratio Decidendi: Centralized services do not constitute technical services where the controlling precedent has already held that such services fall outside the scope of Section 9 and Article 12.

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