TECH DATA (SINGAPORE) PTE LIMITED,MUMBAI vs. DCIT, INTERNATIONAL TAXATION CIRCLE-4(1)(2), MUMBAI

ITA 4540/MUM/2023Status: DisposedITAT Mumbai29 July 2024AY 2021-22Bench: SHRI NARENDRA KUMAR BILLAIYA, HON'BLE (Accountant Member), SHRI RAHUL CHAUDHARY, HON'BLE (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the services rendered by the assessee do not qualify as fees for technical services (FTS) under Article 12(4) of the India-Singapore DTAA. The Tribunal found that the services were operational management and support, and did not involve making available technical know-how or developing/transferring technical plans. Therefore, the management fees are not taxable as FTS.

What were the facts?

The assessee, Tech Data (Singapore) Pte Limited, filed an appeal against the order dated 20/10/2023, which was framed under section 143(3) read with section 144C(13) of the Act. The appeal pertains to Assessment Year 2021-22. The primary grievance concerns the treatment of management/service fees as fees for technical services (FTS) under the Act and the India-Singapore DTAA, leading to additions of INR 38,56,25,301.

What were the issues?

Whether the management/service fees received by the assessee constitute 'Fees for Technical Services' (FTS) as per Article 12 of the India-Singapore DTAA, or if they are protected under Section 90(2) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 253(1)(d),Section 234A,Section 234B,Section 274,Section 270A,Section 9(vii),Section 90(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI RAHUL CHAUDHARY, HON’BLE

For Appellant: Shri Nitesh Joshi, A/R
Hearing: 29/07/2024Pronounced: 29/07/2024

PER NARENDRA KUMAR BILLAIYA, AM:

This appeal by the assessee is preferred against the order dt. 20/10/2023 framed u/s 143(3) r.w.s. 144C(13) of the Act, by NFAC, Delhi, pertaining to Assessment Year 2021-22. 2. The grievance of the assessee reads as under:- “Based on the facts and circumstances of the case, Tech Data (Singapore) Pte Limited (hereinafter referred to as 'TD Singapore' or 'the Appellant') respectfully craves le

The order continues below.

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