TaxTMI 
TaxTMI 
2016 (1) TMI 36
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....wing grounds have been raised by the Revenue : "(1) On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals) erred in allowing the benefit of the Double Taxation Avoidance Agreement to the assessee by holding that partnership firm is a tax resident of UK ; 2. On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Appeals) erred in holding article 15 of the Indo-UK treaty will be applicable as against the taxability of the receipts as per domestic law of India since the partnership is not a person as per article 3(f) of the Indo-UK treaty ; 3. The appellant prays that the order of the learned Commissioner of Income-tax (Appeals), Mum....
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.... view that the fee received by the solicitors' firm is in the nature of "fee for technical services". Accordingly, the Assessing Officer computed the income of the assessee at Rs. 2.85 crores. 5. In the appellate proceedings, the learned Commissioner of Income-tax (Appeals) held that the fees received by the assessee-solicitors' firm does not fall in the category of fee for technical services, but it would fall under the category of fee of independent personal services. Since the period of stay of the lawyers, who visited India was less than 90 days, the learned Commissioner of Income-tax (Appeals) held that the assessee does not have fixed base in India and accordingly held that fee received by the assessee-solicitor is not taxa....
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....ed in UK even though the firm is not recognised as taxable entity under the taxation provisions of UK. For the sake of convenience, we extract bellow the relevant discussion made by the hon'ble High Court of Calcutta in the abovesaid case : "It is the other objection regarding attempt on the part of the Revenue to subject the petitioners to double taxation on the ground its income was not saved from the charge of income tax by the India- UK treaty, that the Revenue has not been able to overcome. In dealing with such objection it is necessary to reproduce below. Certain clauses, relevant for the purpose, of the India-UK treaty notified on February 11, 1944. 'Article 1-Scope of the Convention 1. This Convention sh....
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....al oper ating agency.' The effect of the relevant provisions of the India-UK Treaty as reproduced above is that the convention applies to persons who are residents of one or both of the Contracting States by operation of clauses 1(f) and 2 of article 3 of the convention. It is found the said partnership, partners of which are registered in the UK, is not a person treated as a taxable unit under the taxation laws in force in the UK. Under section 2(31)(iv) of the Income-tax Act, 1961, person includes a firm and under section 2(23)(i) thereof, a firm shall have the meaning assigned to it in the Indian Partnership Act, 1932 and shall include a limited liability partnership as defined in the Limited Liability Partnership Act, 2008. The p....