The Income Tax Appellate Tribunal held that the guarantee fees...

The Income Tax Appellate Tribunal held that the guarantee fees received by the assessee, a foreign company incorporated in Korea and a non-resident without a permanent establishment in India, from its Indian subsidiaries for providing guarantees to foreign banks, cannot be taxed in India as per Article 22 of the Double Taxation Avoidance Agreement. The Tribunal noted that the guarantee fees were assessed as income from other sources and not business income, and that a similar issue for the assessment years 2014-15 and 2015-16 with the same facts and circumstances was held as not taxable in India. Consequently, the Tribunal set aside the order of the Commissioner of Income Tax (Appeals) and allowed the assessee's appeal, ruling that the guarantee fees received during the assessment year 2016-17 are not taxable in India.