DCIT (IT) - 2(2)(1), MUMBAI, MUMBAI vs. ESAB HOLDINGS LIMITED, LONDON

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ITA 2443/MUM/2024Status: DisposedITAT Mumbai09 September 2024AY 2021-22Bench: SMT BEENA PILLAI (Judicial Member), SHRI RATNESH NANDAN SAHAY (Accountant Member)1 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the services rendered were primarily managerial and did not 'make available' technical knowledge or skills to the recipient. Therefore, they did not fall under the definition of FTS as per Article 13 of the India-UK Tax Treaty.

What were the facts?

The assessee, ESAB UK, provided management services to its Indian group company, EWAC Alloys, from outside India. The revenue contended that this income was Fees for Technical Services (FTS) taxable in India. The assessee claimed it was business income not taxable in India due to the absence of a Permanent Establishment.

What were the issues?

Whether management services rendered by a non-resident to an Indian company constitute Fees for Technical Services (FTS) taxable in India under the India-UK Double Taxation Avoidance Agreement (DTAA).

Which sections of the Income-tax Act were involved?

Section 9(1)(vii)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(8)Show list

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Income Tax Appellate Tribunal, MUMBAI BENCH “I”, MUMBAI

Before: SMT BEENA PILLAI & SHRI RATNESH NANDAN SAHAY

For Appellant: Shri Ajit Jain & Siddesh Chaugule, A.R
For Respondent: Shri Anil Sant (SR. D.R.)

O R D E R Per: Ratnesh Nandan Sahay, Accountant Member: 1. This appeal has been filed by the revenue against the Order of the Ld. CIT (Appeals) passed u/s. 250 of the Income Tax Act [the „Act‟ in short]

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