Dismissing the appeal of the revenue the Court held that the payments made to the U. K. company to settle the amounts of surveyors on cost-to-cost basis and the surveyors did not make available any technical knowledge which could be independently applied by the assessee and hence the payment made by the assessee would not be taxable as fees for technical services in the hands of the recipient. In the absence of a permanent establishment, the income in the hands of the recipient was not taxable in India. The Tribunal was right in holding that the assessee was not liable to deduct tax at source on the survey fees paid. (AY.2005-06 to 2010-11)
CIT v. Royal Sundaram Alliance Insurance Co. Ltd. (2020)423 ITR 122 (Mad)(HC)
S. 9(1((i) : Income deemed to accrue or arise in India – Business connection – Fees for professional or technical services – Deduction at source Amount paid to surveyors to settle the amount on cost to cost basis – No permanent Establishment in India – Not liable to deduct tax at source -DTAA- India -UK .[ S, 9(1)(vii), 90 194J ]