Treaty benefit, goodwill depreciation and hedging costs: export commission disallowed, while key business deductions and depreciation claims succeeded...
Undisclosed foreign asset classification requires an unexplained source; unrebutted affidavits and corroborative evidence defeated the Black Money Act...
The ITAT followed its co-ordinate Bench rulings in the assessee's own earlier years on materially identical facts and found no change in law or evidence to justify a different view. It held that the presence of related entities in India and the support services they rendered did not create a fixed place, service or dependent agent PE, or a business connection, so reinsurance and retrocession receipts were not taxable in India as business profits under the treaty. It also held that the support service receipts failed the make-available test because no technical knowledge, skill, know-how or process was transferred for independent future use, and the amounts were therefore not taxable as fees for technical services. The impugned additions were deleted.
The ITAT followed its co-ordinate Bench rulings in the assessee's own earlier years on materially identical facts and found no change in law or evidence to justify a different view. It held that the presence of related entities in India and the support services they rendered did not create a fixed place, service or dependent agent PE, or a business connection, so reinsurance and retrocession receipts were not taxable in India as business profits under the treaty. It also held that the support service receipts failed the make-available test because no technical knowledge, skill, know-how or process was transferred for independent future use, and the amounts were therefore not taxable as fees for technical services. The impugned additions were deleted.
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