DCIT INTL. TAX CIRCLE-1(2)(2), NEW DELHI vs. EVEREST GLOBAL INC., USA

ITA 1270/DEL/2023Status: DisposedITAT Delhi10 September 2025AY 2018-1924 pages
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What did the Tribunal hold?

The Tribunal held that the marketing, sales, and consultancy services rendered by the assessee did not qualify as Fees for Technical Services (FTS) or Fee for Included Services (FIS) under Article 12 of the India-USA DTAA. This was because the services did not involve making available technical knowledge or skill, nor did they involve the transfer of technology.

What were the facts?

The assessee, a US-based consulting firm, received payments for marketing, sales, and consultancy services. The Assessing Officer treated these receipts as Fees for Technical Services (FTS) taxable in India. The CIT(A) partially deleted additions but sustained those related to marketing and sales services.

What were the issues?

Whether marketing, sales, and consultancy services rendered by a non-resident without a Permanent Establishment in India are taxable as Fees for Technical Services (FTS) or Fee for Included Services (FIS) under the India-USA DTAA, particularly concerning the 'make available' clause.

Which sections of the Income-tax Act were involved?

Section 143(2)

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Cases cited in this judgment(10)Show list

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Income Tax Appellate Tribunal, DELHI ‘D’ BENCH,

Before: SHRI CHALLA NAGENDRA PRASAD, & SHRI NAVEEN CHANDRA

For Appellant: Ms. Vandana Bhandri, CA
For Respondent: Shri Vikram Singh Sharma, Sr. DR
Hearing: 24.06.2025Pronounced: 10.09.2025

PER BENCH:- The above captioned bunch of six separate appeals by the assessee and four separate cross appeals by the Revenue are preferred against the order of the ld. CIT(A), Delhi-44 dated 22.02.2023 pertaini

The order continues below.

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