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...
ITAT held that the support service fees received by the assessee under the Global Framework Network Agreement constitute commercial business services and do not qualify as royalty under s.9(1)(vi) or as fees for technical services under Article 12 of the India-Netherlands DTAA. Relying on Revenue's acceptance in prior assessments and unchanged facts, the Tribunal found no transfer of intellectual property nor "make-available" of technical knowledge, skills or processes; accordingly Article 12(4) is inapplicable. The fees also do not constitute taxable business profits under Article 7 because the assessee had no permanent establishment in India and rendered services from abroad. Revenue's grounds were dismissed.
ITAT held that the support service fees received by the assessee under the Global Framework Network Agreement constitute commercial business services and do not qualify as royalty under s.9(1)(vi) or as fees for technical services under Article 12 of the India-Netherlands DTAA. Relying on Revenue's acceptance in prior assessments and unchanged facts, the Tribunal found no transfer of intellectual property nor "make-available" of technical knowledge, skills or processes; accordingly Article 12(4) is inapplicable. The fees also do not constitute taxable business profits under Article 7 because the assessee had no permanent establishment in India and rendered services from abroad. Revenue's grounds were dismissed.
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