Appellate Tribunal upholds CIT(A)'s order deleting additions for non-deduction of TDS

The Appellate Tribunal dismissed the revenue's appeal, upholding the CIT(A)'s order to delete the additions made by the Assessing Officer regarding disallowance of software support charges for non-deduction of TDS for the assessment year 2016-17. The Tribunal found the issue in favor of the assessee based on decisions of the High Court and the Supreme Court, concluding no error in the CIT(A)'s reasoning.

---

---

Issues:
The judgment involves the appeal against the order passed by the Commissioner of Income Tax (Appeals) pertaining to the assessment year 2016-17.

Grounds of Appeal:
The revenue raised multiple grounds of appeal including the deletion of disallowance of deduction u/s 40(a)(i) of the Act, consideration of decisions by ITAT and Jurisdiction High Court, and the nature of payments towards software.

Facts of the Case:
The assessee, M/s. Saipem India Private Ltd, filed its return of income for the assessment year 2016-17, declaring a total income. The assessment was completed, making additions towards disallowance of software support charges for non-deduction of TDS. The CIT(A) deleted the additions based on previous decisions and the matter is now before the Appellate Tribunal.

Arguments:
The CIT-DR argued that the additions made by the Assessing Officer should not have been deleted, citing previous decisions. The Counsel for the assessee supported the CIT(A)'s order, stating that the issue is now covered in favor of the assessee by relevant court decisions.

Decision and Analysis:
After hearing both parties and reviewing the orders, the Tribunal found that the issue is now covered in favor of the assessee by the decisions of the High Court and the Supreme Court. The Tribunal upheld the CIT(A)'s order to delete the additions made by the Assessing Officer, concluding that there was no error in the reasoning provided by the CIT(A).

Conclusion:
The Appellate Tribunal dismissed the appeal filed by the revenue, upholding the order of the CIT(A) to delete the additions made by the Assessing Officer. The decision was pronounced in the court on 28th June, 2023 at Chennai.

---