TaxTMI 
TaxTMI 
2023 (8) TMI 1257
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....on facts by mentioning the returned income as INR 3,39,42,926 instead of INR 48,53,503 thereby computing the total income as INR 6,30,32,353 and taxing the same income twice. Each of the above ground are independent and prejudice to one and another." 3. Ground No. 1 of grounds of appeal is in treating the services provided by the assessee to Reliance Corporation IT Park Limited and the payment received as Fees for Technical Services under Article 12 of India - Singapore Double Tax Avoidance Agreement. 4. Brief facts are that the assessee is a tax resident of Singapore and is in the business of providing design services to customers in the Asia Pacific region. During the assessment year under consideration the assessee has provided the services to its Indian Associated Enterprises - Gensler Design India Pvt. Ltd. This service included designs, technical and consulting services, marketing support services and services related to evaluation of certain project properties. Receipts in lieu of these services have been offered to tax as Fees for Technical Services (FTS) @ 10% in accordance with Article 12 of Indo Singapore DTAA. In the course of assessment the Assessing Officer notice....
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.... both under the Income Tax Act and the Indo - Singapore DTAA. 6. Assessee filed objections before the DRP and the DRP by order dated 7.06.2019 sustained the view of the Assessing Officer holding that the transfer of technical plan or design enabled RCITP to acquire the rights to apply into its project the technology enhancement in the design or blue print. This technology was a combined product of the expertise of the assessee and inputs acquired from the clients and got embedded into the technical designs or plans that were made by the assessee. The DRP held that when the client uses the designs it uses the technology i.e. enhancement in the designs and plans and, therefore, the requirements of Article 12 of the DTAA are met. 7. Before us the ld. Counsel for the assessee reiterated the submissions made before the Assessing Officer and the DRP. Ld. Counsel further submits that the design services provided by the assessee to RCITP are not making available the technical knowledge as every time a design service is being provided for a particular project the same design cannot be utilized for different project by relying as design are made project specific. Therefore, the transaction....
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....ign consultancy for the Twin Tower Project of Reliance Corporation IT Park Limited, Ghansoli, India. The Twin Tower Project as described in the work order comprises of two towers one having 28 and the other having 26 floors. RCITP will set up a world class office complex along with a business centre in the Twin Tower. The assessee was required to provide/prepare designs for the interior office/business sets in the Twin Tower Building. The assessee was to prepare designs for all areas of the building such as lobby, visitors experience centre, business centre, private offices, cabins and work stations, conference meeting rooms, cafetoria, storage areas etc. The assessee was required to work in close co-ordination with the project/building architects, engineers and other teams of experts involved in the Twin Tower Projects. The question now is as to whether the services provided by the assessee to RCITP falls under Article 12 (4) of Indo - Singapore DTAA as fees for technical services. For quick reference clause (4) of Article 12 of Indo - Singapore DTAA which defines the term 'Fees for Technical Services' is reproduced as under:- "4. The term fees for technical services" as used in....
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....CIPAL DESIGNER hereby acknowledges and agrees that neither the PRINCIPAL DESIGNER nor any ASSIGNED PERSONNEL shall have any rights, title or interest in any INTELLECTUAL PROPERTY RIGHTS created (whether wholly or partly) by the PRINCIPAL DESIGNER or sub-consultant in relation to the performance of the SERVICES or other obligations under the AGREEMENT. The PRINCIPAL DESIGNER hereby assigns and transfers and shall cause the ASSIGNED PERSONNEL to assign and transfer to COMPANY, all rights, title and interest in all such INTELLECTUAL PROPERTY RIGHTS created. 2.9 The PRINCIPAL DESIGNER hereby assigns and transfers to the COMPANY, from the moment of creation, all right, title and interest in all DELIVERABLES, but excluding specifically the PRINCIPAL DESIGNERS INTELLECTUAL PROPERTY RIGHTS incorporated in the DELIVERABLES. The PRINCIPAL DESIGNER hereby grants the COMPANY a perpetual, irrevocable, nonexclusive, royalty-free, fully paid-up right and license to use, copy, modify and prepare derivative works of the PRINCIPAL DESIGNER S INTELLECTUAL PROPERTY RIGHTS incorporated in the DELIVERABLES, for the use of the DELIVERABLES by the COMPANY and its AFFILIATES and third parties engaged by ....