2019 (7) TMI 534

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....raised in these appeals, we are, therefore, proceedings to dispose them off by this consolidated order for the sake of convenience. 2. ITA No.2333/PUN/2016 is an appeal by the Revenue in the case of Faurecia Automotive Holding against the order passed by the ld. CIT(A)-13, Pune dated 07-07-2016 deleting penalty of Rs. 26,67,220/- imposed by the Assessing Officer u/s.271(1)(c) r.w.s. 144C(13) of the Income-tax Act, 1961 (hereinafter called 'the Act') in relation to the assessment year 2011-12. 3. Briefly stated, the facts of the case are that the AO passed the assessment order making two additions, viz., (1) Reimbursement of salary paid to expatriate Mr. Franck Euvrard treated as Fees for technical services; and (2) Receipt of IT suppo....

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....cia Technology Center India Pvt. Ltd. towards part of salary paid by it to the expatriate Mr. Franck Euvrard in France, which was treated by the AO as "Fees for technical services" (FTS) and included in the total income. 8. Having heard both the sides and gone through the relevant material on record, it is found as an admitted position from the rival sides that the facts and circumstances of this ground are mutatis mutandis similar to those for the A.Y. 2011-12. Following the view taken for the A.Y. 2011-12, we order to delete the addition. This ground is, therefore, allowed. 9. The assessee has raised an additional ground in respect of taxation of IT support services fees received from Faurecia India as Royalty as well as FTS. The as....

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....T support services, which was claimed as not chargeable to tax. The AO examined the nature of services and held the same to be income from Royalty/FTS. He, therefore, added Rs. 3,24,83,500/- in the total income of the assessee, against which the assessee has approached the Tribunal. 16. We have heard both the sides gone through the relevant material on record. It is observed from the "Costs Allocation Agreement" between the assessee and Faurecia Technology Center India Pvt. Ltd., whose copy has been placed at page 178 onwards of the paper book that the assessee, a resident of France, rendered services to the Indian entity which have been narrated in Exhibit-1 of the agreement reading as under : "The service provider assists the ....