Itxa/390/2018 Of Commissioner Of Income Tax (It) -4 v. Wns North America Inc

JPP IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 390 OF 2018 Commissioner of Income Tax (IT-4)… AppellantV/s. M/s. WNS North America Inc. ... Respondent Mr. Tejveer Singh for the Appellant Ms. Porus Kaka, Senior Advocate a/w. Mr. Manish Kanth i/b. Mr.Atul Jasani for the Respondent CORAM : NITIN JAMDAR & M.S. KARNIK, JJ. DATE : 09 JANUARY 2020. P.C.:- Heard learned Counsel for the parties. 2. The Appeal pertains to Assessment Year 2011-12. 3.This Appeal under Section 260A of the Income Tax Act,1961 challenges the order of the Income Tax Appellate Tribunal(Tribunal) dated 18 November 2016. 4.The Appellant – Revenue has framed following questions as substantial questions of law :- “ (i) Whether on the facts and in the circumstances ofthe case and in law, the Hon’ble Tribunal was justified in holding that reimbursement of lease line charges byWNS India does not qualify as “Royalty” under Article12(3)(b) of the India-UK DTAA ? (ii)Whether, on the facts and in the circumstances ofthe case and in law, the Hon’ble Tribunal was justified innot treating the reimbursement of lease line chargesamounting to Rs.10,76,41,998/- as business profitsunder Article 7 read with Article 5 of India USA DTAAin view of ‘Force of Attraction rule ?” 5.The learned Counsel for the parties have fairly broughtto our attention that these questions of law in Assessee’s own casehave been held against the Appellant – Revenue in order dated 7February 2018 in Income Tax Appeal Nos. 890 of 2015 and 891 of2015. In view of this position, the questions as framed do not giverise to any substantial question of law. The Appeal is accordinglydismissed. 6.Before closing, we may note the contentions advancedby the learned Senior Advocate for the Respondent that there is aconcurrent finding by the Commissioner (Appeals) and the Tribunalthat the amounts are pure reimbursements and in view of thisfinding of fact and in view of the decision of the Apex Court in thecase of Director of Income-Tax (International Taxation v/s. A.P.Moller Maersk A/S - (2017) 392 ITR 186 (SC), the questions asproposed do not give rise to any substantial question of law. M.S. KARNIK, J. NITIN JAMDAR, J.