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

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ITA 2444/MUM/2024Status: DisposedITAT Mumbai09 September 2024AY 2020-21Bench: 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 Indian company, thus not falling under the definition of FTS as per the India-UK Tax Treaty. Therefore, the income was not taxable in India.

What were the facts?

The assessee, a UK resident, provided management services to an Indian group company. The revenue treated the income from these services as Fees for Technical Services (FTS) taxable in India, while the assessee claimed it as business income not taxable due to the absence of a Permanent Establishment (PE) and the services not meeting the 'make available' clause of the India-UK Tax Treaty.

What were the issues?

Whether management services provided by a non-resident to an Indian entity constitute Fees for Technical Services (FTS) taxable in India under the India-UK Tax Treaty, specifically considering the 'make available' clause.

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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