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K. R. SHRIRAM, NEELA GOKHALE
Shell India Markets Private Limited – Appellant
Versus
Union of India, Through Ministry of Finance – Respondent
JUDGMENT :
(Neela Gokhale, J.)
1. This Petition visits the question pertaining to determination of tax liability of the payments made by Petitioner to its non resident group company, Shell International Petroleum Company Limited (“SIPCL”) for availing General Business Support Services ("BSS") under a Cost Contribution Arrangement ("CCA") between Petitioner and SIPCL.
2. On an application made by Petitioner seeking such determination, the Authority for Advance Rulings (Income Tax), New Delhi ("AAR"), by its Order dated 17th January 2012 held that payments made by Petitioner to SIPCL towards BSS under the CCA constitutes income in the hands of SIPCL being in the nature of fees for technical services within the meaning of Article 13.4 (c) of the Double Tax Avoidance Agreement ("DTAA") between India and UK and is chargeable to tax in India. Consequently, AAR held that Petitioner is under obligation to withhold tax under section 195 of the Income Tax Act, 1961 ("the Act").
3. Aggrieved by this Order, Petitioner, by way of the present petition, challenges the validity and legality of the said Order passed by the AAR.
4. Petitioner is a company registered in India under the Companies Act, 1
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