Daily Archives: January 25, 2013


P.T. McKinsey Indonesia v DDIT IT APPEAL NO. 7625 (MUM.) OF 2010 (dtd 16.1.2013) (Mum ITAT) Background: Assessee, a foreign company, engaged in the business of providing Strategic Consultancy Services filed its return of income on 27-10-2007 declaring NIL income. During the assessment proceedings, AO found that assessee had claimed to have received a sum of Rs. 23.41 Lakhs under the head ‘Business Receipts’. AO held that the payments received by the assessee were in the nature of consideration received for rendering of technical and consultancy services so as to make available technical knowledge, skill, know how, experience or process and thus was in the nature of fees for included services as covered by Article 12 of the DTAA between India and Indonesia’.

Provision of data is not Royalty & the same cannot be taxed as ‘Other Income’ ...