Make available condition not met for manpower support services, so receipts were not taxable as technical services.

Receipts from manpower support services were held not to constitute fees for technical services because the services did not transfer technical knowledge, skill, know-how, process, technical plan or technical design to the recipient. Mere collaboration with academic institutions in the United States was insufficient to satisfy the make available condition under Article 12(4) of the India-USA DTAA. Applying its earlier reasoning from the assessee's preceding year and finding no fresh distinguishing material, the Tribunal held the receipts were not taxable under section 9(1)(vii) or the treaty and deleted the addition.

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Issues: Whether receipts from manpower support services rendered to Flipkart constituted fees for technical services under section 9(1)(vii) of the Income-tax Act, 1961 and Article 12(4) of the India-USA Double Taxation Avoidance Agreement, particularly on the application of the make available condition.

Analysis: The Tribunal followed its decision in the assessee's own case for the preceding assessment year and held that the manpower support services did not involve any transfer of technical knowledge, skill, know-how, process, technical plan or technical design to the recipient. Mere collaboration with academic institutions in the United States did not by itself satisfy the make available requirement. Since no fresh material or distinguishing feature was brought on record for the year under appeal, the earlier reasoning was applied to the present year as well.

Conclusion: The receipts were not taxable as fees for technical services under section 9(1)(vii) of the Income-tax Act, 1961 or Article 12(4) of the India-USA Double Taxation Avoidance Agreement, and the addition was deleted.

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