Tribunal held that, perusal of clauses of Agreement between assessee and TIL clearly showed that they were purely in nature of advisory services. Accordingly the Income arising from rendering of advisory services in a foreign country cannot be taxed as fees for technical service where the assesse does not have a permanent establishment in India. Reimbursement cannot be asseees as income. (AY.2002-03, 2003-04)
Add. CIT (I) v. Timken Company (2018) 192 TTJ 823 (Kol.)(Trib.)
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Income arising from rendering of advisory services in a foreign country cannot be taxed as fees for technical service where the assesse does not have a permanent establishment in India- Reimbursement cannot be asseees as income – DTAA-India- USA. [S. 92, Art, 7, 12]