Tribunal Rules FTS as Business Income Under India-Thailand DTAA; AO Misapplies Articles, No Permanent Establishment Found.

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....The case involved the taxability of Fees for Technical Services (FTS) u/s India-Thailand DTAA. The Appellate Tribunal held that if revenue arises from "profits of an enterprise" u/r Article 7, Article 22 is inapplicable. The AO wrongly invoked Article 22 based on the web portal info, not the Memorandum of Association. FTS falls under business income unless proven otherwise. The existence of Permanent Establishment (PE) in India was wrongly assumed without proper examination. The services provided were technical, managerial, or consultancy, constituting FTS as part of business income, not falling u/s any DTAA article. The AO failed to establish why FTS is not part of business income, so Article 22 couldn't apply. Decision favored the assessee.....