Assessee, a tax resident of Mauritius, which is  engaged in business of managing diamond factories and facilitating diamantaires to operate economically for high quality diamond factories across the Globe. It had entered into a technical collaboration with its Associated Enterprises [AEs] in India viz., for providing technical, process, marketing and sales assistance services outside India and received fees for technical services (FTSs).  Assessing Officer invoking provisions of section 9(1)(vii) read with section 115A(1)(b) and held that FTS were chargeable to tax in India. CIT(A) up held the order of the AO. On appeal the Tribunal held that  there was no specific clause in DTAA entered into between India and Mauritius and article 12A was inserted with effect from 1-4-2017 which could not be applied for financial year 2017-18.It is  a settled position of law by various co-ordinate benches and High Courts that in absence of a clause in DTAA not dealing with a particular item of income, payments are not be regarded as residuary income but as business income which is  not chargeable to tax in India, in absence of any PE of non-resident assessee in India. Accordingly the  FTS income received by assessee would not be taxable in India.(AY. 2017-18)