On appeal against the single judge in Flipkart Internet (P) Ltd v.Dy.CIT (IT) (2022) 288 Taxman 699/ 448 ITR 268/   327 CTR 289( Karn)( HC)  division bench  held that payments made by the assessee-company to its US group entity towards reimbursement of salaries of seconded employees could not be treated as fees for technical services/fees for included services and therefore no tax was deductible at source u/s 195. The Court found that the secondment arrangement under the MSA clearly established an employer–employee relationship between the assessee and the secondees, supported by appointment letters, job responsibilities, PF contributions and visa arrangements. The remittances were on a pure cost-to-cost reimbursement basis, and the assessee had rightly sought a certificate u/s 195(2). Applying the “make available” test under Article 12 of the India–USA DTAA, the Court held that the payments did not involve transfer of technical knowledge or consultancy services so as to qualify as FIS/FTS. Accordingly, reimbursement of salary paid to seconded employees fell outside the scope of taxable sums under the Act and no withholding obligation arose. The direction to issue certificate u/s 195(2) was upheld. Order of single judge affirmed. (AY.2020-21)