TaxTMI 
TaxTMI 
2026 (6) TMI 987
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....Dispute Resolution Panel (DRP). 2. In Ground No. 1, the assessee has challenged the validity of the assessment order on the ground that it is barred by limitation in terms with section 153 of the Act. 3. We have considered rival submissions and perused the materials on record. Keeping in view the recent amendments made to Sections 144C, 153 and 153B of the Act with retrospective effect, we hold that the assessment order passed is within the period of limitation. Hence, this ground is dismissed. 4. In Ground No. 2, the short controversy is with regard to taxability of Rs. 49,68,78,301/- as Fees for Technical Services, ('FTS'), under Section 9(1)(vii) of the Act and Article 12(4)(b) of India-Singapore Double Taxation Avoidance Agreem....
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....ssessee. The Assessing Officer, however, was not convinced with the submissions of the assessee. He was of the view that part of the services performed come within the ambit of consultancy, whereas the other part would come within the ambit of managerial services. Having held so, he held that so far as managerial services are concerned, there is no need for fulfilment of make available condition as it only applies in case of technical services. Accordingly, he held that the fee received would qualify as FTS. Without prejudice, he also held that the fee received would also be in the nature of royalty under Section 9(1)(vi) of the Act and article 12(3) of the Treaty. Accordingly, he brought the amount to tax. 7. Against the draft assessmen....
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....rder passed for AY 2021-22, the Tribunal, in order dated 29-07-2024, has held as under: "6. We find that this Tribunal in ITA No. 3280/Mum/2023 for AY 2020-21, has decided a similar quarrel and held as under:- "10. Heard both the sides and perused the material on record. Without reiterating the facts as elaborated above assessee has entered into an agreement with T.D. India, pursuant to which the assessee renders certain management and business support services to T.D. India. The services rendered inter alia includes finance, logistics, branding, business strategies, treasury, human resources etc. The assessee explained that all the resources undertaken as referred above were either support services, coordination or tax se....
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....be paid for providing the services. The rate of compensation is given in Schedule-B to the said agreement. A perusal of Schedule-B shows that for performing the services described in Schedule-A, the assessee shall be compensated at cost + mark up @ 7.5%. We find that the Assessing Officer has held that management fee received by the assessee for rendering services is in the nature of FTS. Article- 12(4) of India - Singapore DTAA defines the expression FTS. For the sake of ready reference clause -4 of Article 12 is reproduced herein under:- "4. The term "fees for technical services" as used in this Article means payments of any kind to any person in consideration for services of a managerial technical or consultancy nature (includin....
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....he services rendered by the assessee as per Schedule-A of the Service Agreement does not in any manner show that any technical knowhow has been made available or there is development and transfer of technical plan or technical design. The services rendered are in the nature of operational management and providing support system. The services also includes providing of training and developing strategies, etc. We find that the Assessing Officer has taken pains to segregate services rendered by the assessee under the segments technical, managerial and consultancy. However, no effort has been made by the Assessing Officer to examine whether the services rendered under the three segments fulfil the criteria so as to fall within the definition of....