Tribunal partially rules in favor of assessee, allowing appeal due to Covid-19 delay. Management Support fees not taxable.

The Tribunal allowed the appeal, partially ruling in favor of the assessee. The delay in filing the appeal due to the Covid-19 pandemic was condoned, and the appeal was admitted for disposal on merits. The Tribunal held that Management Support fees were not taxable under the DTAA, based on the Most Favoured Nation clause. Regarding Human Resources services and Leadership Seminar and Conference services, the Tribunal remitted the matter back to the AO for re-examination to determine taxability under the DTAA, ensuring a reasonable hearing opportunity for the assessee.

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Issues:
1. Delay in filing the appeal due to Covid-19 pandemic.
2. Taxability of Management Support fees under DTAA.
3. Taxability of Human Resources services and Leadership Seminar and Conference services under DTAA.

Issue 1: Delay in filing the appeal due to Covid-19 pandemic
The appeal was time-barred by 166 days, but the delay was attributed to the Covid-19 pandemic. The assessee relied on judgments by the Hon'ble Supreme Court related to the extension of limitation due to the pandemic. The Tribunal accepted this reason and condoned the delay, admitting the appeal for disposal on merits.

Issue 2: Taxability of Management Support fees under DTAA
The assessee, a non-resident company, received Management Support fees from its Indian entity. The AO treated this amount as fees for technical services (FTS) covered under the India-Sweden Treaty and India-Portuguese treaty. However, the Tribunal, following its precedent, held that the amount was not chargeable to tax based on the Most Favoured Nation (MFN) clause and overturned the impugned order, directing not to include the amount in the assessee's total income.

Issue 3: Taxability of Human Resources services and Leadership Seminar and Conference services under DTAA
The assessee challenged the inclusion of amounts received for HR services and Leadership Seminar and Conference services as FTS under the India-Portuguese DTAA. The Tribunal noted that the receipts were claimed as not chargeable under the DTAA. While Leadership training fees were previously held not chargeable, there was an overlap with HR services. Additional evidence was presented regarding HR services, which was not considered by the authorities. The Tribunal remitted the matter to the AO for re-examination to determine the taxability of both receipts under the DTAA, ensuring the assessee gets a reasonable hearing opportunity.

In conclusion, the appeal was partly allowed, with the Tribunal ruling in favor of the assessee regarding the taxability of Management Support fees and remitting the issue of HR services and Leadership Seminar and Conference services back to the AO for further examination.

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