https://www.taxtmi.com/caselaws?id=413220 No attribution from offshore supply could be made for training charges where the evidence showed no training was conducted in India during the year and the component was already covered in foreign supervision charges; the addition was deleted. Liquidated damages and defect liability charges, being contingent warranty-type clauses not triggered in the relevant year, also could not be attributed to offshore supply and were deleted. Design and engineering receipts were, however, treated as taxable fees for technical services because the customised drawings and deliverables were found to be technical services under the treaty and domestic law; that taxability was upheld. Interest was consequential, and penalty initiation was rejected as premature. en-us Mon, 27 Sep 2021 00:00:00 +0530 Tue, 09 Aug 2022 17:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=413220 No attribution from offshore supply could be made for training charges where the evidence showed no training was conducted in India during the year and the component was already covered in foreign supervision charges; the addition was deleted. Liquidated damages and defect liability charges, being contingent warranty-type clauses not triggered in the relevant year, also could not be attributed to offshore supply and were deleted. Design and engineering receipts were, however, treated as taxable fees for technical services because the customised drawings and deliverables were found to be technical services under the treaty and domestic law; that taxability was upheld. Interest was consequential, and penalty initiation was rejected as premature. Case-Laws Income Tax Mon, 27 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=413220