TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
Transfer-pricing comparability requires exclusion of financially illogical super-profit comparables and correction of unsupported annual-report and ma...
Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
Functional comparability governs software-service benchmarking: dissimilar companies are excluded, while related-party filters, margins and working-ca...
The assessee company made payments for IT service charges to a foreign entity without deducting tax at source (TDS) u/s 195. The Assessing Officer treated these expenses as fees for technical services/royalty and disallowed them u/s 40(a)(ia) for non-deduction of TDS. However, the Coordinate Bench of the Tribunal, in the assessee's own case for the assessment year 2012-13, had already decided the issue in favor of the assessee. It held that the payments for software usage did not constitute "use of, or the right to use, any copyright of software" under Article 12(3) of the applicable tax treaty. Consequently, Article 12(4)(a) was not attracted, making the payments immune from taxation in India under the beneficial treaty provisions compared to the domestic law. Therefore, there was no requirement for the assessee to deduct TDS, and the disallowance u/s 40(a)(i) was incorrect. The Tribunal decided the issue against the Revenue.
The assessee company made payments for IT service charges to a foreign entity without deducting tax at source (TDS) u/s 195. The Assessing Officer treated these expenses as fees for technical services/royalty and disallowed them u/s 40(a)(ia) for non-deduction of TDS. However, the Coordinate Bench of the Tribunal, in the assessee's own case for the assessment year 2012-13, had already decided the issue in favor of the assessee. It held that the payments for software usage did not constitute "use of, or the right to use, any copyright of software" under Article 12(3) of the applicable tax treaty. Consequently, Article 12(4)(a) was not attracted, making the payments immune from taxation in India under the beneficial treaty provisions compared to the domestic law. Therefore, there was no requirement for the assessee to deduct TDS, and the disallowance u/s 40(a)(i) was incorrect. The Tribunal decided the issue against the Revenue.
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