Itxa/1557/2012 Of The Director Income Tax (It) -1 v. M/S. Wns North America Inc

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1557 OF 2012 The Director of Income Tax (IT)-I..Appellant.V/s.M/s. WNS North America Inc..Respondent. Respondent. Mr. Tejveer Singh, for the Appellant. Mr. P. J. Pardiwalla, Sr. Advocate with Mr. A. K. Jasani, for the Respondent. P.C:- CORAM: J.P.DEVADHAR & M.S.SANKLECHA,JJ.DATE : 13[th] FEBRUARY, 2013. Heard. 2In this appeal by the Revenue for the Assessment Year 2004-05, following questions have been raised for our consideration:- (1)Whether on the facts and circumstances of the case, the Tribunal was correct in holding that amount of Rs.3,19,91,133/- received from WNS India for marketing and management services in India is not fees for technical services as per Article 13 of India US Treaty? (2)Whether on the facts and circumstances of the case, the Tribunal was correct in holding that amount of Rs.19,09,85,116/- received from WNS India for marketing and management services outside India is not fees for technical services as per Article 13 of India US Treaty? (3)Whether on the facts and circumstances of the case, the Tribunal was correct in holding that amount of Rs.19,09,85,116/- received from WNS India for marketing and management services outside India is not attributable to PE in India ignoring the force of attraction rule embedded in India US Treaty? (4)Whether on the facts and circumstances of the case, the Tribunal was correct in holding that amount of Rs.84,48,510/- received on account of reimbursement of lease line charges does not qualify as Royalty under Article 12 of India US Treaty? (5)Whether on the facts and circumstances of the case, the Tribunal was correct in holding that amount of Rs.84,48,510/- received from WNS India on account of reimbursement of lease line charges is not attributable to PE in India ignoring the force of attraction rule embedded in India US Treaty? (6)Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that the assessee being non-resident and the entire income of the assessee subject to TDS u/s. 195 of the Act and hence no liability arises u/s. 234B and 234C of the Act? (7)Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that the reimbursement of Various expenses amount to Rs.1,15,26,465/- by WNS India does not qualify as Fees for Technical services under Article 13(4) (c) of India US DTAA? (8)Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that the reimbursement of various expenses amount to Rs.1,15,26,465/- by WNS India is not attributable to PE in India ignoring the force of attraction rule embedded in India US Treaty? 3Counsel for the parties state that all the aforesaid Questions were subject matter of a decision passed by us today in Income Tax Appeal (L) No.1130 of 2012 filed by the Revenue in respect of WNS Global Services (UK) Ltd. and none of the above questions which were also raised therein were entertained by us. For the reasons stated in our order dated 13[th] February, 2013 in Income Tax Appeal (L) No.1130 of 2012, we see no reason to entertain the reframed Questions 1 to 8. 4Accordingly, appeal is dismissed with no order as to costs. (M.S.SANKLECHA,J.) (J.P.DEVADHAR,J.)