2025 (12) TMI 1881

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....nue had filed the appeal challenging the order of Learned Commissioner of Income Tax (Appeals) ['Ld. CIT(A)' for short], National Faceless Appeal Centre ('NFAC' for short) passed u/s. 250 of the Income Tax Act, 1961 ('the Act') on the ground that the Ld. CIT(A) has erred in holding that the borrowed service fees received by the assessee from Mckinsey India is not fee for technical service and the same would fall within the ambit of "business profit" as per Article 7 of India-UK DTAA where the Ld. CIT(A) held that income is "business profit" which is not taxable in India in the absence of Permanent Establishment ("PE" for short). The Tribunal by a consolidated order dated 08.10.2024 upheld the order of the Ld. CIT(A) by holding the same ....

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.... the present miscellaneous application for recall of the Tribunal's order on the ground that inadvertently the captioned appeal was heard instead of appeals pertaining to A.Y. 2017-18 and 2019-20 which were below the prescribed mandatory limit in ITA No.1821/M/2024 and 1817/M/2024 respectively, which then were subsequently heard and dismissed against the Revenue on low tax effect. The assessee/applicant aggrieved by the same has challenged the order of the Tribunal on the ground that the assessee was not heard on the issue of the existence of PE during the year under consideration and prayed that the order of the Tribunal be recalled. 5. The Learned Authorized Representative ("Ld. A.R." for short) for the assessee/applicant contended tha....

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.... nature of FTS and the Ld. CIT(A) though has held this to be "business income" has not gone into the facts of the existence of PE and had merely relied on the order of earlier years. The Ld. DR also contended that the issue of PE has to be seen qua the facts of each year and not merely verbatim follow the earlier assessment years where facts could be distinguishable for each assessment year depending upon various circumstances. The Ld. DR reiterated that there is no mistake apparent on record in the order of the Tribunal and prayed that the assessee's miscellaneous application be dismissed. 7. We have heard the rival submissions and perused the materials available on record. It is observed that the Tribunal has passed a consolidated orde....