2016 (8) TMI 78

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....of the Commissioner of Income tax (Appeals)-16, Chennai is contrary to Law, facts and circumstances of the case. 2. The Commissioner of Income tax (Appeas) erred in confirming the decision of the Assessing officer Levying tax under section 201(1) of Rs. 4,36,62,927/- and interest under Section 201 (lÀ) of Rs. 80,28,162/- 3. The Commissioner of Income tax (Appeals) ought to have appreciated that internet bandwidth and communication charges payable by the company for expenditure incurred totally outside India with not leg of transaction happening in India would not constitute royalty or fees for technical services. 4. The Commissioner of Income tax (Appeals) ought to have appreciated that in view of the decis....

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....orporate Connectivity and Data Centre Management, providing international Data and voice Communication services to its customers. The business of the appellant is divided into two broad categories: a) Services rendered within India: For the services rendered in India the appellant uses its own pipeline for transmission of data & provision of services. b) Connectivity services rendered abroad: for the connectivity services provided abroad, the appellant contracts with other connectivity providers abroad & the services are used wholly outside India. The head office of the appellant being situated in India, the remittance for the connectivity services are made from India. The calls primarily originate abroad and terminate ....

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.....R submitted that the order passed u/s.201 (1) & 201(1A) is barred by limitation in view of the provisions of the section 201(3) of the Act. 5. On the other hand, the ld.D.R submitted that order passed u/s.201(1) & 201(1A) has been well within the time limit allowed u/s.201(3) of the Act. 6. We have heard both the parties and perused the material on record. The provisions of the section 201 prior to its substitution, sub-section(3) amended by Finance Act,2012 with retrospective effect of 01.04.2010 read as under:- "s.201(3) No order shall be made under sub-section(1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, at any time after the expir....