The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has directed a new adjudication holding that the support or maintenance services of Avaya international are taxable as Fees for Technical Services (FTS) under Article 12 of the India-Ireland Double Taxation Avoidance Agreement (DTAA).
The appeal had been filed as to whether the payments received by the assessee, Avaya International Sales Ltd towards support/ maintenance services were taxable in India as Fees for Technical Services (FTS) either under Section 9(1)(vi) of the Income-tax Act, 1961 or under Article 12 of India – Ireland Double Taxation Avoidance Agreement (DTAA).
Shashwat Bajpai, on behalf of the assessee submitted that the assessee was a non-resident corporate entity incorporated under the laws of Ireland and a tax resident of Ireland. Therefore, the assessee was entitled for the benefits under India – Ireland DTAA.
He also submitted to restore back the issue to the Assessing Officer as identical issue in assessee’s own case in assessment year 2016-17 was restored the issue back to the Assessing Officer with certain directions for de novo adjudication.
Vizay B. Vasanta, on behalf of the revenue, fairly agreed with the aforesaid submissions of the assessee and submitted to restore back the Assessing Officer in consonance with the decision taken by the tribunal in assessment year 2016-17.
The two-member Bench of G.S. Pannu (President) and Saktijit Dey (Judicial Member) following the decision in assessee’s own case restored back the issue to the Assessing Officer for de novo adjudication. Hence, the appeal allowed.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
