ITA Nos. 969 & 1614/Del/2023

Parties Involved

Facts Summary

The appeal in ITA No.1614/Del/2023 for AY 2020-21 arises from the order of the Commissioner of Income Tax (Appeals)-43, New Delhi against the order of assessment passed by the Assessing Officer, DCIT, Circle-3(1)(1), International Taxation, New Delhi. The assessee, Transkor Global Pte Ltd, a Singapore-based company, provides technical non-invasive inspection and integrity assessment/scanning of offshore pipelines. The assessee received payments from Indian entities but claimed that these were taxable in Singapore and not in India. The assessee argued that the receipts did not fall under the definition of “fee for technical services” (FTS) and that it did not have a permanent establishment in India. The Commissioner of Income Tax (Appeals) held that the receipts were taxable as business income under the India-Singapore Double Taxation Avoidance Agreement (DTAA) as they did not satisfy the “make available clause” of Article 12(4)(b) of the treaty.…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) was justified in holding the receipt of the assessee as business income instead of fee for technical services (FTS).

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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