IT support services do not satisfy the make available test: ITAT:

IT support services do not satisfy the make available test: ITAT In the matter of M/s CPP Assistance Services Pvt Ltd vs CIT(A) ITAT held that in the matter of the Assessee IT support services do not satisfy the make available test as no technical know-how, skill, etc were transferred to the assessee. The concept of make available which requires that fruits of services should remain unavailable to the service recipients in some concrete shape such as technical knowledge, experience, skill, etc and service recipient has to make use of such technical knowledge, skill, etc by himself in his business and for his own. ITAT was of considered view that the assessee is unable to make use of the said technology only by itself in its business or for its own benefit without recourse to the UK company. ITAT analysed that the facts of the case in hand show that the assessee does not gain any technical knowledge, experience or skill as it is not involved in the process that service provider is following while rendering the services. The IT support services are rendered by CPP UK from UK itself and these services are rendered for the entire group and not just for CPP India. Further ITAT analysed that the agreement between CPP group services and the assessee is perpetual and such services are provided by CPP group on recurring basis to the assessee and if the technical knowledge, skill etc. is being made available to the assessee, then there would be no need for the assessee to take recourse to the CPP UK for these services. In light of above discussion, ITAT directed the Assessing Officer to delete the disallowance of Rs. 5,46,31,534/- For Official Judgment Download PDF Given Below: