2017 (4) TMI 1436

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....These are the appeals filed by the assessee against the order of CIT(A)-10, Mumbai dated 28/02/2014 for the Assessment Year 2009-10 in the matter of order passed u/s.248 of the IT Act. 2. The grounds taken by the assessee reads as under:- 1. The learned CIT(A) erred in holding that the payment of USD 18,10,632/made by the appellant to AMAS Bank would be taxable as fees for technical se....

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....record perused. 4. Facts in brief are that the assessee is a scheduled Bank duly registered and carrying on the business of banking under the Reserve Bank of India Act and Banking Regulation Act of India. For the purpose of expanding its banking business activities and also for meeting other capital needs, the Bank felt the need to raise capital abroad through the issuance of Global Depository ....

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....being net of withholding tax). 5. In pursuance of the assignment, Amas Bank were successful in raising an aggregate amount of USD 51,732,334 by way of the gross proceeds of GDR issued. The fees at 3.5% of the gross proceeds worked out to approximately USD 18,10,632. The said fees were adjusted from the proceeds of GDR and transferred to an escrow account on 25/06/2008. Pursuant to this remittan....

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....bility to pay tax u/s.195 of the IT Act. In respect of the amount payable to AMAS Bank UAE, we also found that the services rendered by Amas Bank were purely of a commercial nature and bore the character of income arising to it wholly outside India, emanating from commercial services rendered by the Bank in the course of carrying on of its business wholly outside India. Services under the Agreemen....