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The Tax Publishers2021 TaxPub(DT) 1906 (Mad-HC) INCOME TAX ACT 1961
Section 40(a)(ia)
Following the ratio laid down by Supreme Court in Engineering Analysis Centre of Excellence Private Limited [2021 SCC OnLine SC 159 : 2021 TaxPub(DT) 1208 (SC)], assessee was not laible to deduct tax on source on payment made to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements.
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Business disallowance under section 40(a)(ia) - Payment to Non-resident Computer software manufacturers/suppliers - Non deduction of tax at source -
Assessee made payment to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements. AO made disallowance under section 40(a)(ia) for non-deduction of tax at source as he was of the view that payment made was on account of royalty which was taxable as per provision of section 9(1)(vi). Held: Following the ratio laid down by Supreme Court in the Engineering Analysis Centre of Excellence Private Limited [2021 SCC OnLine SC 159 : 2021 TaxPub(DT) 1208 (SC)], the questions of law was decided against the revenue and in favour of the assessee.
Followed:Engineering Analysis Centre of Excellence Private Limited [2021 SCC OnLine SC 159 : 2021 TaxPub(DT) 1208 (SC)].
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2008-09
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