Assessee was a scheduled bank engaged in banking business duly registered under Banking Regulation Act.  For its need for capital, assesse bank decided to raise capital abroad through issuance of Global Depository Receipts (‘GDRs’). Assessee had engaged one Amas Bank which was incorporated under laws of United Arab Emirates and was carrying on financial services, for providing services such as Global coordinator and Lead Manager to said GDR offer. AO held that payments made to Amas bank were liable to tax in India as fee for technical services . Tribunal held that  services rendered by Amas Bank were purely of a commercial nature and bore character of income arising to it wholly outside India, emanating from commercial services rendered by Bank in course of carrying on of its business wholly outside India. Tribunal further held that such services were neither rendered in India nor utilized in India and therefore, payments for services so rendered did not partake character of fees for technical services. Accordingly  the addition was deleted .On appeal High Court up held the order of the Tribunal.