https://www.taxtmi.com/caselaws?id=762524 ITAT Chennai ruled in favor of the assessee regarding TDS deduction under section 195 for software purchase payments to a US company. The AO had demanded TDS under section 201(1)/201(1A), citing Finance Act 2012 amendments making software payments taxable income. The Tribunal held that retrospective amendments cannot impose liability when no such requirement existed at the time of payment. Following SC precedent in Engineering Analysis and Madras HC decisions in Saipem India, Dasault, and Financial Software cases, the Tribunal set aside lower authorities' orders and directed deletion of the addition, allowing all grounds of appeal. en-us Wed, 27 Nov 2024 00:00:00 +0530 Mon, 02 Dec 2024 16:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762524 ITAT Chennai ruled in favor of the assessee regarding TDS deduction under section 195 for software purchase payments to a US company. The AO had demanded TDS under section 201(1)/201(1A), citing Finance Act 2012 amendments making software payments taxable income. The Tribunal held that retrospective amendments cannot impose liability when no such requirement existed at the time of payment. Following SC precedent in Engineering Analysis and Madras HC decisions in Saipem India, Dasault, and Financial Software cases, the Tribunal set aside lower authorities' orders and directed deletion of the addition, allowing all grounds of appeal. Case-Laws Income Tax Wed, 27 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762524