TaxTMI 
TaxTMI 
2026 (4) TMI 1192
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....sed by the Income Tax Appellate Tribunal Bench "D", New Delhi (ITAT) (hereinafter referred to as 'Tribunal') in ITA No. 2385/DEL/2023 for the Assessment Year (AY) 2020-21 has been preferred with an assertion that following substantial questions of law are involved:- i) Whether on the basis of the facts and in the circumstances of the case, the ITAT erred in not considering the fact that the service provided by the Assessee to PBIL under the Intra Group Service agreement help in providing en enduring benefit to the service recipient PBIL and satisfy the make available clause under Article 13 of the India UK DTAA? ii) Whether on the basis of the facts and in the circumstances of the case, the ITAT erred in not holding that t....
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....dance with the Article '4 of the Indian-UK Double Taxation Avoidance Agreement ('DTAA') and the business operations of the Assessee is primarily providing management and support services for learning technology and consultancy services to its group entities, which in turn manage the schools in their respective jurisdictions. 3.2 That Assessee filed its return of income on 30.03.2021 declaring an income of Rs. 41,44,17,300/- and same was processed under the provision of Section 143(1) of the Act and thereafter case of the assessee was selected for scrunity assessment and notice under Section 143(2) was issued. 3.3 That during the year, the Assessee entered into a licensing agreement with Vikas Educational Society, Orang....
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.... managerial activities which do not allow PBIL to enjoy any right, property or information nor does it make available any technical knowledge, experience, skill, know how or processes to PBIL. Due to the restricted nature of the definition of Fees for Technical Services ('FTS') in India-UK DTAA the same was not considered to be liable to tax in India. Accordingly, the income amounting to Rs. 28,64,22,509/- earned from cross charges is claimed as exempt income by the Assessee in its return of income in accordance with the provisions of the India-UK DTAA. 3.6 That during the course of assessment proceedings, the Assessing Officer proposed to treat the cross charge receipts from PBIL is taxable as 'FTS' under Section 9 of the Act as w....
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....of technical knowledge or enduring benefit provided to PBIL. And accordingly concluded that the condition of "make available" is not satisfied in the present situation. Having concluded so, the Tribunal held that the services provided by the respondent-company to PBIL do not amount to Fees for Technical Services (hereinafter referred to as 'FTS) in terms of Article 13 of the India-UK Double Taxation Avoidance Agreement (DTAA) (hereinafter referred to as 'India-UK Treaty'). 5. Mr. Ruchir Bhatia, learned Senior Standing Counsel for the Department took the Court through the Agreement, which has been reproduced by the Tribunal at internal page no. 3 to 6 of the impugned order and argued that if the entire bouquet of transactions and services....
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....missioner of Income Tax (International Taxation)-1, Delhi v. M/s Bio-Rad Laboratories (Singapore) PTE Ltd. decided on 03.10.2023, and contended that while dealing with almost similar sector/nature of transactions, this Court has upheld the findings of the Tribunal by holding that there are no "make available" services. 9. He submitted that the guidelines or instructions which are provided by the respondent-company to PBIL do not provide any enduring benefit. Not only the technical aspect, even other aspects are in the hands and control of the respondent-company and simply because in the process of receiving and executing instructions, some employees of the Indian company develop certain skills, it cannot be said that any enduring benefit....