Assessee, a US company engaged in business of providing gem trading services and other allied and technical services. Assessing Officer held that payment for travel being intrinsically linked for providing training and technical services, had to be regarded as FTS. On appeal the Tribunal held that in earlier years Tribunal held that such reimbursement of expenses was not in nature of FTS. Following consistent view of Tribunal, addition made by Assessing Officer is deleted. (AY. 2016-17)
Gemological Institute International Inc. v. CIT (2021)214 TTJ 393 / (2022) 192 ITD 83 / 211 DTR 139 (Mum.)(Trib.)
S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Reimbursement of expenses-Not taxable as fees for technical services-DTAA-India-USA. [Art. 12]