|COURT:||Bombay High Court|
|CORAM:||B. P. Colabawalla J, S. C. Dharmadhikari J|
|CATCH WORDS:||Fees for technical services|
|DATE:||August 8, 2014 (Date of pronouncement)|
|DATE:||October 10, 2014 (Date of publication)|
|FILE:||Click here to download the file in pdf format|
|Income by way of fees for technical services payable by a person who is a resident, would be income deemed to accrue or arise in India|
Section 9(1) of the Act provides which incomes shall be deemed to accrue or arise in India. Sub-clause (vii)(b) of section 9(1) of the Act, as applicable to the facts of the present case, inter alia provides that income by way of fees for technical services payable by a person who is a resident, would be income deemed to accrue or arise in India, except where (i) the fees are payable in respect of service utilised in a business or profession carried on by such person outside India; or (ii) for the purposes of making or earning any income from any source outside India. In the present case, FCI, IPCC and J.K. Synthetics Ltd are all residents of India. Hence payments made by them to the Assessee Company would fall within sub-clause (vii) (b) of section 9(1) of the Act. However, the proviso stipulates that nothing in sub-clause (vii) to section 9(1) shall apply in relation to any income by way of fees for technical services payable in pursuance of an agreement made before the 1st day of April, 1976, and approved by the Central Government.