2013 (5) TMI 45

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing the order passed by the Tribunal holding that the company cannot be regarded as a defaulter under Section 201(1) of the Income Tax Act and consequential interest under Section 201(1A) is not leviable and directing cancellation of the same. 2. The assessee entered into a Collaboration Agreement with M/s. GE Information Technology Inc., USA(GEMS IT, USA). According to the contract, the USA comp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hich is supported by the letter dated 09.07.2002 issued by US Company. The Assessing Officer held that the agreement was not cancelled but only the payment of royalty was cancelled. Therefore, he passed an order under Section 201(1) of the IT Act raising demand of tax of Rs.30,46,188/- and also held that the interest is payable thereon. 3. Aggrieved by the said order, the assessee preferred an ap....