Appeal allows marketing payments as deductible business expenses under Sec.37; director pay retained; R&D deductible from certificate date under Sec.3...
Registration under s.12AB upheld; CIT(Exemptions) exceeded jurisdiction by deciding taxability instead of preliminary verification and registration di...
The ITAT, with the Third Member concurring with the Judicial Member, held that payments by the assessee for use of IT infrastructure facilities do not constitute "plant" and therefore do not fall within the scope of Article 12(3)(a) of the Indo-Belgium DTAA; absent the specific phrase "for the use of, or right to use, industrial, commercial or scientific equipment," such payments are not taxable as royalties under section 9(1)(vi) of the Act for the year in question. Consequently, no TDS liability arises on those payments and the assessee's appeal is allowed.
The ITAT, with the Third Member concurring with the Judicial Member, held that payments by the assessee for use of IT infrastructure facilities do not constitute "plant" and therefore do not fall within the scope of Article 12(3)(a) of the Indo-Belgium DTAA; absent the specific phrase "for the use of, or right to use, industrial, commercial or scientific equipment," such payments are not taxable as royalties under section 9(1)(vi) of the Act for the year in question. Consequently, no TDS liability arises on those payments and the assessee's appeal is allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4823 
Join Channel 
