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Section 9, read with section 40(a)(i), of the Income-tax Act, 1961 and article 12 of DTAA between India and UAE - Income - Deemed to accrue or arise in India (Fee for technical services) - Assessment year 2004-05 - Whether 'consultancy services' would mean something akin to advisory services provided by non-resident, pursuant to deliberation between parties and ordinarily, it would not involve instances where non-resident is acting as a link between resident and another party, facilitating transaction between them, or where non-resident is directly soliciting business for resident and generating income out of such solicitation - Held, yes - Whether where agent of assessee-company at UAE acted as a liaisoning agent for assessee, and received remuneration from each client successfully solicited for assessee, such services could not be said to be included within meaning of 'consultancy services' and consequently, remittances made by assessee to it would not come within scope of phrase 'fees for technical services' as employed in section 9(1)(vii) - Held, yes [Para 19] [In favour of assessee] Words and Phrases - Words 'Consultancy Service' as occurring in section 9(1)(vii) of the Income-tax Act, 1961 FACTS â–  The assessee was awarded project management consultancy by the Works Department of the Emirate of Abu Dhabi. It was to act as a consultant for project management of marble works. It paid certain sum to two companies of UAE named CGS and Marble, but did not deduct TDS from said payment. It submitted that said sum was consultancy charges and since neither of these concerns had any business connection in India, TDS was not deductible. The assessee further referred to article 14 of Double Taxation Avoidance Agreement (DTAA) and contended that in view of stipulation, in Article 14 it was not required to deduct TDS. â–  The Assessing Officer noticed that the assessee did not produce copies of the agreements with the two foreign concerns and, accordingly, disallowed the said sum. â–  Before the Commissioner (Appeals), the assessee contended that what was paid to the two foreign concerns was not consultancy fee. As regards Marble the services…