TaxTMI 
TaxTMI 
2015 (3) TMI 1132
X X X X Extracts X X X X
X X X X Extracts X X X X
....contrary to the facts and law. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 76,23,426/- u/s. 40(a)(ia) on account of payment made to licensor. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 13,78,496/- u/s. 40(a)(ia) on account of payment made for Catche License procurement and software update catch. 4. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 2,96,861/- on account of expenditure made on tour to Maldives. 5. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aw applicable to the issues in dispute have already been decided in favor of the assessee in assessee's own case by the Hon'ble Jurisdictional High Court, therefore, in view of the synopsis the appeal filed by the Revenue may be dismissed. 6. On the contrary, Ld. DR relied upon the order passed by the AO and reiterated the contentions raised by the Revenue in the Grounds of Appeal. 7. We have heard both the counsel and perused the records available on record with us, especially the orders passed by the Revenue Authorities alongwith the Synopsis filed by the Ld. Counsel of the assessee. As regards the issue involved in Ground No. 1, the same is general in nature, therefore need not be adjudicated the same. 8. As regards Ground No. 2 relat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd the Hon'ble Jurisdictional High Court in the case of CIT vs. Dynamic Vertical Software India (P) Ltd. (2011) 332 ITR 222 (Del) whereby it has been held that:- "3. What is found, as a matter of fact, is that the assessee has been purchasing the software from Microsoft and sold it further in Indian market. By no stretch of imagination it would be termed as "royalty". 8.1 Keeping in view of the decision of the Hon'ble Jurisdictional High Court passed in the case of CIT vs. Dynamic Vertical Sofware India (P) Ltd, (2011) 332 ITR 222 (Del.), we are of the considered view that the dispute is squarely covered in favor of the assessee. Respectfully, following the same precedent, the issue involved in Ground No. 2 is decided against the Revenue ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Rs, 2,96,861/- disallowed. In appeal Ld. CIT(A) has discussed the same at page 11 vide para 7. After going through the order of the Revenue Authorities and the Written submissions of the assessee, we are of the view that the Managing Director of the company visited Maldives for exploring the business prospects. The reason for disallowance given by the AO is that no business was explored during the year, hence the same does not pertain wholly and exclusively for business purposes. The assessee had business relationships with M/s M Plus Maldives Pvt. Ltd. who had invested a sum of Rs. 1,27,21,150/- towards share capital of the assessee company. During preceding year the assessee had installed and sold software to M/s Magic Kingdom Resorts at....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the Agreement. Just on the basis of date of agreement the AO disallowed the expense. The facts are that the agreement was an going agreement and software are generally implemented on make shift servers and once it is tested and completed in all respects, it is moved to the New Server. The copy of ledger account is placed at PB Pg. 77-78. Further copies of emails from Mr. Rajiv Saxena, Sir Ganga Ram Hospital are placed at PB Pg. 102-106 which shows that the assessee has settled the claim of the client on 50% i.e. for Rs. 4,38,980. We find considerable force in the finding of the Ld. CIT(A) that the assessee has also filed a copy of the debit note dated 20.4.2007 raised by Sir Ganga Ram Hospital. In view of the facts of the case, Ld. CIT(A)....