https://www.taxtmi.com/caselaws?id=756728 The Bombay HC ruled in favor of the assessee regarding TDS obligations under Section 195 for software procurement payments to foreign parties. The CIT(A) and Tribunal had concurrently found that payments were not royalty in nature, thus no TDS requirement under Section 40(a)(i). The HC upheld this decision, following SC precedent in Engineering Analysis Centre of Excellence that Explanation 6 to Section 9(1)(vi) cannot have retrospective effect. The Revenue's attempt to retrospectively apply Explanation 4 introduced by Finance Act 2012 to Section 9(1)(iv) was rejected. en-us Tue, 23 Jul 2024 00:00:00 +0530 Wed, 07 Aug 2024 11:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756728 The Bombay HC ruled in favor of the assessee regarding TDS obligations under Section 195 for software procurement payments to foreign parties. The CIT(A) and Tribunal had concurrently found that payments were not royalty in nature, thus no TDS requirement under Section 40(a)(i). The HC upheld this decision, following SC precedent in Engineering Analysis Centre of Excellence that Explanation 6 to Section 9(1)(vi) cannot have retrospective effect. The Revenue's attempt to retrospectively apply Explanation 4 introduced by Finance Act 2012 to Section 9(1)(iv) was rejected. Case-Laws Income Tax Tue, 23 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756728