TaxTMI 
TaxTMI 
2014 (6) TMI 573
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....f management fees without deduction of tax at source. The facts relating to this ground are that the assessee debited a sum of Rs. 7,83,087/- and Rs. 13,46,200/- on account of 'Royalty' and 'Management fee' respectively, paid to its foreign AE. The AO noticed that the Management fee was paid exclusive of tax and the tax was to be borne by the assessee. The AO noticed that the assessee failed to deduct tax at source properly and, further, no TDS certificate was furnished. He, therefore, made disallowance, inter alia, for Rs. 13,46,200/- u/s 40(a)(i) of the Act. The ld. CIT(A) observed that the assessee had deducted tax at source @ 10% on the Management fee which was deposited on 16.07.2009. He, therefore, deleted the disallow....
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....e first time. In our considered opinion, the ends of justice would meet adequately if the impugned order on this score is set aside and the matter is restored to the file of the AO. We order accordingly and direct him to decide this issue afresh as per law, after allowing reasonable opportunity of being heard to the assessee. 4. The second ground is against the deletion of addition of Rs. 16,12,058/- made by the AO out of expenses incurred under the head 'Fees and subscription.' The AO observed that the assessee's claim in this year at Rs. 17,97,785/- was much in excess vis-a-vis similar claim made for the preceding year at Rs. 1,26,283/-. The AO noticed that the assessee purchased some software against which subscription/fee w....
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.... him for remand report, he considered it expedient not to offer any comment. In such circumstances, we do not find any reason to deviate from the finding recorded by the ld. CIT(A) that such expenses were not for software purchase but revenue in the nature towards fees and subscription. This ground is not allowed. 6. The last ground of the Revenue's appeal is against the deletion of addition of Rs. 1,25,86,495/- made by the AO on account of Communication and Travelling expenses. The AO observed from the documents filed by the assessee that Communication expenses and Travelling & conveyance expenses claimed by the assessee as deduction for the current year were much higher than those claimed in the preceding year. He, therefore, disallo....