https://www.taxtmi.com/caselaws?id=757432 ITAT Mumbai held that network fees received by a Netherlands company from its Indian associated enterprise did not constitute fees for technical services (FTS) under the Income Tax Act or India-Netherlands DTAA Article 13. The assessee operated global business infrastructure including IT networks and e-commerce portals, earning network transportation fees from its Indian subsidiary. The AO treated these receipts as FTS subject to taxation in India, despite the assessee's contention that they constituted business income not taxable absent a permanent establishment. The DRP upheld the AO's position. However, ITAT Mumbai, following its coordinate bench decisions in similar cases for assessment years 2017-18 and 2020-21, directed deletion of the addition, ruling that network fees did not fall under FTS provisions. en-us Wed, 14 Aug 2024 00:00:00 +0530 Sat, 24 Aug 2024 08:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757432 ITAT Mumbai held that network fees received by a Netherlands company from its Indian associated enterprise did not constitute fees for technical services (FTS) under the Income Tax Act or India-Netherlands DTAA Article 13. The assessee operated global business infrastructure including IT networks and e-commerce portals, earning network transportation fees from its Indian subsidiary. The AO treated these receipts as FTS subject to taxation in India, despite the assessee's contention that they constituted business income not taxable absent a permanent establishment. The DRP upheld the AO's position. However, ITAT Mumbai, following its coordinate bench decisions in similar cases for assessment years 2017-18 and 2020-21, directed deletion of the addition, ruling that network fees did not fall under FTS provisions. Case-Laws Income Tax Wed, 14 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757432