2022 (8) TMI 1517

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....ceivable management and customer retention services to its overseas Associated Enterprises (AE). For the year under dispute, assessee filed its return of income on 27.11.2015 declaring income of Rs. 14,31,61,230. 3. In course of assessment proceedings, the assessing officer noticed that in the year under consideration, assessee has remitted an amount of Rs. 9,22,52,255 to an Overseas Entity viz., IQOR Philippines, which has been shown in the financial statement as contractual employees cost. After calling for necessary details and examining them, the assessing officer found that the payment was made to the AE in the form of business auxiliary services without withholding tax under Section 195 of the Act. He, therefore, called upon the asse....

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....it as per Article 7 of the India-Philippines DTAA. Proceeding further, he observed, once the income received is in the nature of business profit, in the absence of PE, the income is not taxable in India. 4. We have heard the parties and perused the material on record. While, learned Departmental Representative strongly relied upon the observations of the assessing officer, learned counsel appearing for the assessee relied upon the observations of learned Commissioner (Appeals) and submitted that there are a number of decisions of the co-ordinate Benches, wherein, with reference to India-Philippines DTAA, it has been held that, even, in absence of FTS clause, the income would be governed under the other provisions of DTAA, hence, has to be ....