CPPGROUP SERVICES LIMITED,LEEDS, UNITED KINGDOM vs. ASSISTANT COMMISSIONER OF INCOME-TAX, DELHI

ITA 980/DEL/2025Status: DisposedITAT Delhi04 November 2025AY 2022-23Bench: SHRI VIKAS AWASTHY (Judicial Member), SHRI BRAJESH KUMAR SINGH (Accountant Member)18 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the IT support services did not qualify as FTS as the 'make available' clause of the DTAA was not satisfied. The Tribunal also deleted the addition made on account of non-IT support services, following its previous decisions where similar services were not considered FTS.

What were the facts?

The assessee, a UK-based company, provided IT support and non-IT support services to its Indian subsidiary. The Assessing Officer (AO) treated these services as 'Fee for Technical Services' (FTS) taxable in India under the India-UK DTAA. The assessee argued that similar services were previously held not to be taxable as FTS in prior assessment years for its Indian subsidiary.

What were the issues?

Whether IT support and non-IT support services rendered by a foreign company to its Indian subsidiary constitute 'Fee for Technical Services' taxable in India under the India-UK DTAA, specifically concerning the 'make available' clause.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘D’: NEW DELHI

Before: SHRI VIKAS AWASTHY & SHRI BRAJESH KUMAR SINGH

For Appellant: Shri Ajay Vohra, Sr. Adv, Shri Sujay Paul, CA, Shri Aayush Khandelwal, CA &, Shri Janisar Akhtar, CA
For Respondent: Shri M.S. Nethrapal, CIT-DR
Hearing: 07.08.2025Pronounced: 04.11.2025

PER BRAJESH KUMAR SINGH, AM,

This appeal by the assessee is directed against the order of the Assessing Officer dated 23.12.2024 passed u/s 143(3)/144C(13) of the Income Tax Act, 1961 (hereinafter ‘the Act’) arising out of directions of Dispute Resolution Panel (hereinafter referred to as ‘DRP') dated 26.11.2024 pertaining to Assessment Year 2022-23. 2. The grounds of appeal are as under:-

1.

On the facts and circumstances of the case and in law, the Ld. AO on direction of the Honb'le DRP have erred in considering the sum of INR 20,81,25,275 earned by the Appellant for rendering IT sup

The order continues below.

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