DCIT (INTERNATIONAL TAXATION), CIRCLE-1(2)(1), NEW DELHI vs. CARRIER CORPORATION, USA

The solitary grievance of the revenue read as under :- “1. Whether on the facts and circumstances of the case and on the basis of law, the Ld.CIT(A) has erred in deleting the addition of Rs.2,03,33,932/- made by AO on account of taxation of Reimbursements for IT related support held to be in the nature of Fee for Included Services [FIS] taxable under Article 12(4) of the Indo-US DTAA and also taxable as Royalty for use of equipment under the IT Act as well as Article 12(3) of the Indo-US DTAA. 2. The CIT(A) failed to appreciate that as per the TP study of Indian AE such services were of the nature of FIS and even make available clause was satisfied in the TP study.” 2. A perusal of the grievance of the revenue show that the deletion by the CIT(A) is subject to 10% of tax u/s.115A of the Act which means that the tax effect would be less than Rs. 50 lakhs, therefore, this appeal is not maintainable as per CBDT Circular No. 17/2019 dated 08.08.2019.

This appeal is, accordingly, dismissed with liberty to the revenue to approach the Tribunal as per the provisions of law, should it feel that the tax effect is more than Rs. 50 lakhs.

In the result, the appeal filed by the revenue is dismissed.

The order is pronounced in the open court on 01.02.2022 in the presence of both the rival representatives.