The assessee is engaged in the business of designing and manufacturing of cores and other amorphous metal or nanocrystaline soft magnetic metal used in transmission and distribution equipment and in electronic and computer products and other related products. During the year, the assessee-company paid for support & analysis system provided by three A.E.s, namely, Metglass INC USA, Hitachi. Singapore and Hitachi Japan. With this support system & analysis, the assessee company was producing certain articles or things in India. The Assessing Officer held that the services rendered were such which required expertise and knowledge in the specific area of work and such expertise could not be developed overnight but was the result of long period of work in this line of activities coupled with accumulated experience of operations. Hence, the payments made by the assessee to its AEs partook of USA, the character of FTS. The Commissioner (Appeals) confirmed the action of the Assessing Officer holding that human intervention was in fact an integral part of the said service agreement. On appeal the Tribunal held that   the foreign AE (service provider) has neither employed any technical or skilled person to provide managerial or technical service nor there was direct interaction between the assessee and the foreign AE and the entire process resulting in provisioning of service is fully automated process with no human intervention, charges paid for provision of such services cannot be classified as FTS for the purpose of the IT Act, hence, the assessee was not liable to deduct TDS on such expenditures. (AY. 2011-12)