1. The Petitioner M/s. Tractebel Industry is abody corporate registered under the laws of the Republic of Belgium.

2. For the assessment year 2002-03, the Petitioner had filed return of income in India in respect of "Indian operations" declaring total income of Rs. 2,53,01,260/-. Assessment order under Section 343(3) of the Income Tax Act, 1961 (Act, for short) dated 24th March, 2005 was passed by the Assessing Officer computing the total taxable income at Rs. 2,74,78,666/-. While computing the said taxable income, it was held by the Assessing Officer that Article 12 of the Double Taxation Avoidance Agreement (DTAA) between Republic of India and Republic of Belgium was applicable and the payments received from the "Indian operations" were taxable under the head "Fees for technical services" and was taxable @ 10% on gross basis without allowing any deduction on account of reimbursement of expenses. In view of the above, deduction of Rs. 18,56,756/- claimed on account of reimbursement of expenses was disallowed and added back to the income of the Petitioner.

3. The Petitioner had filed an appeal but the same was dismissed vide order dated 1st December, 2005. No further appeal was