The assessee has provided telephone connectivity services to its Indian customers viz., Vodafone India and BSNL. The Assessing Officer held that the revenue that had generated from Vodafone India and BSNL qualified as fees for technical services as per the provisions of section 9 (1 (vii) read with Article 13 of the India-United Kingdom Double Taxation Avoidance Agreement. On appeal CIT(A) affirmed the order of the Assessing Officer. Tribunal reversed the order of the CIT(A). On appeal High Court affirmed the order of the Tribunal. Followed CIT v. Kotak Securities Ltd (2016) 383 ITR 1/ 239 Taxman 139 (SC),.CIT, International Taxation v. Alibaba.Com Singapore E-Commerce (P.) Ltd (2023) 152 taxmann.com 110 (Bom)(HC) (AY. 2010-11)
CIT v. Interoute Communications Ltd (2023) 294 Taxman 449 (Bom)(HC)
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Telecom services-There was no human intervention in rendering said service-Payments could not be characterised as fees for technical services-DTAA-India-UK. [S. 9(1)(vi), Art. 13]