Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
The ITAT held that the taxpayer's receipts for repair and maintenance of aircraft engines from Indian customers do not constitute Fees for Technical Services (FTS) under the India-Canada DTAA (and India-Singapore DTAA) because the Department failed to establish that technical knowledge, skills or know-how were transferred so as to "make available" technology to the recipient. The Tribunal found no enduring benefit or ability of the recipient to use the technology independently post-contract. Applying the same reasoning to all similar repair and maintenance receipts for the year, the ITAT concluded those receipts are not taxable as FTS in the taxpayer's hands.
The ITAT held that the taxpayer's receipts for repair and maintenance of aircraft engines from Indian customers do not constitute Fees for Technical Services (FTS) under the India-Canada DTAA (and India-Singapore DTAA) because the Department failed to establish that technical knowledge, skills or know-how were transferred so as to "make available" technology to the recipient. The Tribunal found no enduring benefit or ability of the recipient to use the technology independently post-contract. Applying the same reasoning to all similar repair and maintenance receipts for the year, the ITAT concluded those receipts are not taxable as FTS in the taxpayer's hands.
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