Development agreements require legal possession or effective enjoyment for capital gains transfer; permissive possession and deferred consideration de...
Prolonged sterilisation of development rights supports capital-gains treatment, while business-income disallowances cannot govern capital-gains comput...
Additional evidence in transfer pricing dispute leads to fresh examination, while tax deductions, TDS credit, fee and refund interest require verifica...
Category II AIF pass-through taxation preserves non-business income character; investment receipts cannot be reclassified without applying recognised ...
Taxability in India of receipts of foreign AEs - Fee for Technical Services (FTS) - Master Service Agreement relied upon - The Tribunal extensively reviewed the MSA, emphasizing that it established an independent contractor relationship between the Indian entity and its foreign counterparts. It highlighted that the foreign entities had ownership of the intellectual property developed, bore the risk of performance, and had an obligation to indemnify the Indian entity for errors or performance issues. - The ITAT's ruling clarifies the distinction between revenue sharing from a consolidated project and FTS, reinforcing the principle that the nature of the payment depends on the underlying contractual relationships and the actual conduct of parties. - It was held that payments made by HCLT to the foreign AEs could not be construed as FTS.
Taxability in India of receipts of foreign AEs - Fee for Technical Services (FTS) - Master Service Agreement relied upon - The Tribunal extensively reviewed the MSA, emphasizing that it established an independent contractor relationship between the Indian entity and its foreign counterparts. It highlighted that the foreign entities had ownership of the intellectual property developed, bore the risk of performance, and had an obligation to indemnify the Indian entity for errors or performance issues. - The ITAT's ruling clarifies the distinction between revenue sharing from a consolidated project and FTS, reinforcing the principle that the nature of the payment depends on the underlying contractual relationships and the actual conduct of parties. - It was held that payments made by HCLT to the foreign AEs could not be construed as FTS.
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