2011 (7) TMI 1411

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....olding that neither the under writing commission nor the selling commission, received from the Indian Companies would amount to 'Fees for Technical Services' within the meaning of the DTAA between India and U.K." 2. The appellant prays that the order of the ld. CIT(A), Mumbai on the above grounds be set aside and the order of the AO be restored." 2. Briefly stated the facts of the case are that the assessee is a company incorporated in and under the laws of the United Kingdom and is registered as a Foreign Institutional Investor (FII) with the Securities and Exchange Board of India (SEBI). The assessee has obtained necessary permission to carry out investment activity in shares and securities of India companies. During the previ....

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....ble to a permanent establishment of the assessee situated in India and, accordingly the aforesaid income is not liable to tax in India. The assessee relied upon various case laws before the CIT(A) including the decision of ITAT, Mumbai in the case of Raymond Ltd. V. DCIT (2003) 80 TTJ 120 (Mum.). After considering the submissions of the assessee, the CIT(A) held as under:- "5.12.................I have considered the appellant's submission and I agree with the appellant that it had opted to be governed by the provisions of the DTAA and that the provisions of the DTAA ought to apply to the appellant. Section 90(2) of the IT Act makes it very clear that the appellant is entitled to claim the benefits under the IT Act or treaty whichev....