TaxTMI 
TaxTMI 
2026 (9) TMI 1790
X X X X Extracts X X X X
X X X X Extracts X X X X
....sued by the Dispute Resolution Panel- 1, Mumbai (DRP) dated 29.09.2024. 2. The grounds of appeal raised by the assessee are as under: "1. The learned AO has, on the facts and circumstances of the case and in law, erred in making an addition in respect of market data recharges amounting to Rs 33.71.31,820 on the basis that the same qualifies as Royalty as per the provisions of the Act/ Article 12(4) of the India-US Tax Treaty (Treaty) without appreciating the fact that these constitute expenses allocated by the Appellant to its Associated Enterprises (AEs) in India, being reimbursement of expenses incurred on behalf of the AEs in India. 2. The learned AO has, on the facts and circumstances of the case and in law, erred i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in nature. The Hon'ble Supreme court in case of NTPC Ltd. vs. CIT, 229 ITR 383 (SC) has held that the order of Tribunal u/s 254 is expressed in the widest possible terms. There is no reason to restrict the power of the Tribunal u/s 254 only to decide the grounds which arise from the order of the CIT (Appeals). Both the assessee as well as the Department have a right to file an appeal/cross objection before the Tribunal. There is no reason why the Tribunal should be prevented from considering a question of law arising in the assessment proceedings although not raised earlier. Undoubtedly the Tribunal will have the discretion to allow or not to allow a new ground to be raised. But where the Tribunal is only required to consider the question o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....459/-. The assessee contended that the market data charges represented reimbursement of costs incurred towards market data and communication/technology services procured from third-party vendors and that the employee-related receipts represented reimbursement of salary and other employee-related costs on a cost-to-cost basis, without any mark-up or profit element. The assessee also relied upon judicial precedents and orders of the Tribunal in earlier years in support of its claim. The AO, however, rejected the assessee's claim. The market data charges were held to be consideration for access to proprietary databases and were consequently treated as royalty taxable under Article 12(4) of the India-USA DTAA. In respect of the employee-rel....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "6. We have considered rival submissions in the context of facts and materials on record and gone through the decisions relied upon. The short issue arising for consideration is whether the receipt from market data charges are taxable in India as royalty income. We find, while deciding identical issue in assessee's own case in Assessment Years 2013-14, 2014-15, 2015-16 and 2017-18, the coordinate bench in order dated 08/05/2023 passed in ITA No. 401/MUM/2018 and connected appeals, has held as under: ....... ....... 7. The fact that factual position relating to the issue in dispute is identical in the impugned assessment year remains uncontroverted. Even, the Departmental Authorities have accepted that the factual position r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ndisputedly, the amount in dispute was received by the assessee from its Indian AEs towards recovery of employee-related expenses incurred by the assessee on behalf of the AEs. While examining the issue of non-withholding of tax at source on such reimbursements by the AEs to the assessee, i.e., GS & Co., in the proceedings under Section 201 of the Act, the Assessing Officer held that the payments made by the AEs are in the nature of FIS/FTS, hence, required deduction of tax at appropriate rate. The dispute ultimately reached ITAT in case of M/s GSISPL. While deciding the issue in ITA No. 362 to 369 & 345/Bang/2020, vide order dated 29-04- 2022, the Coordinate Bench held that the payments are not in the nature of FIS/FTS, hence, did not requ....