TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal Upholds CIT(A) Rulings: No TDS on Export Commission & Software Expenses, Affirms Favorable Outcome for Assessee.</h1> <h3>ACIT-2 (3) (1), Mumbai Versus M/s Western Outdoor Interactive Pvt Ltd</h3> ACIT-2 (3) (1), Mumbai Versus M/s Western Outdoor Interactive Pvt Ltd - TMI Issues:1. Disallowance of export commission paid to foreign agents.2. Disallowance of content and software development expenses under section 40(a)(ia).Analysis:Issue 1: Disallowance of export commission paid to foreign agentsThe appeal by the revenue was against the CIT(A)'s order for AY 2013-14. The assessee, engaged in software development and export, filed its income return for the year and was subjected to scrutiny. The AO made additions to the total income, including disallowance of export commission paid to foreign parties. The assessee argued that the commission was paid to non-resident agents for procurement of orders, and hence, no income arose in the Indian tax jurisdiction. The CIT(A) deleted the addition based on earlier orders and legal precedents, including the judgment of the Madras High Court. The Tribunal upheld the CIT(A)'s decision, citing similar cases and legal provisions, and rejected the revenue's appeal.Issue 2: Disallowance of content and software development expensesRegarding the disallowance of expenses under section 40(a)(ia), the CIT(A) found that the assessee had not deducted TDS on a portion of content development expenses. The AO disallowed the amount, but the CIT(A) deleted the addition, following his earlier decisions for other assessment years. The Tribunal, consistent with its previous rulings, upheld the CIT(A)'s decision, stating that no TDS was required on certain payments based on legal interpretations and precedents. The revenue's appeal was dismissed, affirming the CIT(A)'s order.In conclusion, the Tribunal dismissed the revenue's appeal, upholding the CIT(A)'s decisions on both issues. The Tribunal's ruling was based on legal interpretations, precedents, and consistency with earlier judgments.
TaxTMI 
TaxTMI 
