High Court of Delhi · Judgments and reasoned final orders
Commissioner of Income Tax (International Taxation)-2 v. Nord Anglia Education Ltd.
ITA 297/2026 ·
Intra-group administrative, management, and online platform support services provided by a UK education company to its Indian counterpart (People Combine Business Initiative Pvt. Ltd. / Oakridge International Schools) for AY 2020-21 do not satisfy the 'make available' requirement under Article 13(4)(c) of the India-UK DTAA and are not taxable as Fees for Technical Services (FTS).
1. FACTS OF THE CASE
For AY 2020-21, the respondent (a UK tax resident) received fees from its Indian group entity People Combine Business Initiative Pvt. Ltd. (PBIL) under an Intra-Group Service Agreement and platform licence agreements for Oakridge International Schools. The AO taxed the receipts as Fees for Technical Services (FTS) under Article 13 of the India-UK DTAA. The ITAT by order dated 07.08.2024 in ITA No. 2385/DEL/2023 deleted the addition.
2. DISCUSSION BY THE COURT
The Division Bench held that under Article 13(4)(c) of the India-UK DTAA, routine managerial, operational, and educational support services provided to an Indian subsidiary to run its business smoothly do not constitute FTS unless technical knowledge, experience, or skill is 'made available' so as to enable the recipient to perform the service independently in the future. Even if some incidental advantage or skill percolates to the Indian entity's employees, that per se does not transfer technical know-how or satisfy the 'make available' test as settled in CIT v. Bio-Rad Laboratories (Singapore) Pte. Ltd.
3. JUDICIAL DECISION
Finding no substantial question of law involved, the High Court dismissed the Revenue's appeal and connected applications.
4. OUTCOME
Assessee - Revenue appeal dismissed; intra-group support receipts held non-taxable under Article 13 of the India-UK DTAA.
5. AKHB REVIEW POINT
Under treaties containing a 'make available' clause (such as Article 13 of the India-UK DTAA), recurring intra-group management and educational support services that do not equip the Indian affiliate to operate autonomously without the foreign parent cannot be taxed as FTS.
Source and verification
7-page official High Court of Delhi judgment PDF (DLHC011103312025_1_2026-04-10.pdf, 55,455 bytes).
Original PDF: 7 pages · SHA-256: b94fa3411d437d9cf96c32c9b5895e9ea049f27a3353224750c34da71269e94b
Supplied source-reviewed note retained; original bytes and identity validation checked in this release. Substantive re-review is not claimed for this record.
Applies Sections 9(1)(vii) and 90 of the Income-tax Act, 1961 read with Article 13 of the India-UK DTAA for AY 2020-21. Income-tax Act, 2025 equivalence is not verified.
Full 7-page primary judgment PDF text read and verified page-by-page. Follows CIT v. Bio-Rad Laboratories (Singapore) Pte. Ltd. (2023) 459 ITR 5 (Del).
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