2010 (9) TMI 152

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....STICE REVA KHETRAPAL   Mr. Sanjeev Sabharwal, Advocate Mr. V.K. Sabharwal, Advocate A.K. SIKRI, J. (ORAL) 1. This appeal pertains to the Assessment Year 2001-02. The issue relates to the treatment which is to be given to the amount of 6,59,416 paid by the assessee to its parent foreign company, i.e., Karl Storz Vertriebs GMBH & Company. The assessee had claimed that the parent ....

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....that this was not the first year in which such a claim was made. He stated that the Indian Company was incorporated during the Assessment Year 1998-99 and for the establishment of this company which is subsidiary to the aforesaid foreign company, Mr. Peter Laser was deputed, the amount paid from the Assessment Year 1998-99 onwards were always treated as salary and accepted as such. Learned counsel....

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....g paid to the foreign company. Assuming for the sake of argument that it was in the nature of technical fees paid to the foreign company; then, as rightly pointed out by the learned counsel, Article 12.4 was applicable and not Article 13.4 as contended by the learned DR. Even if Article 12.4 was applicable, the said Article specifically excludes payments mentioned in Article 15. Article 15 states ....