In the present case, the Income Tax Appellate Tribunal (ITAT)...

In the present case, the Income Tax Appellate Tribunal (ITAT) held that when the sale of software (prime) license fees is not taxable, the fees for provisions for other related services like training, utilization, and installation cannot be considered as Fees for Technical Services (FTS) under the India-UK Double Taxation Avoidance Agreement (DTAA). The ITAT noted that the Assessing Officer had accepted the assessee's claim that the sale of software license fees was not taxable for the relevant assessment year. The Coordinate Bench of the ITAT had previously held in the assessee's case for the preceding year that when the software itself is not taxable, the related activities cannot be treated as FTS. The ITAT found no distinguishing facts or evidence from the Department to controvert the earlier order. Consequently, the ITAT deleted the addition made by treating the fees for provisions for other related services as taxable and allowed the assessee's appeal.