TaxTMI 
TaxTMI 
2014 (5) TMI 1122
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....echnical Services' is taxable on receipt basis and not on accrual basis as held by the Assessing Officer in the assessment order. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in holding that value of the software supplied by the assessee to M/s. Siemens Ltd. Cannot be treated as 'Royalty" in the hands of the assessee." 2. At the outset it may be mentioned here that Ld. AR was required to submit whether or not any appeal was filed by the assessee against the impugned order of Ld. CIT(A). In reply Ld. AR submitted that assessee did not file any appeal against the impugned order of Ld. CIT(A). 2.1 It was further submitted by Ld. AR that both the issues raised by the Revenue are covered in ....
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....ed on receipt basis without appreciating the fact that the Hon'ble Supreme Court has held in the case of Standard Drum Motors Private Limited V/s. CIT, 201 ITR 391 that the credit entry to the account of the assessee non-resident in the books of the Indian Company amounted to receipt by the non-resident?" Their Lordships have decided this issue as per the following observations: "2. As regards first question is concerned, the Income Tax Appellate Tribunal referring to para-1 to 3 under Article IIX-A of the Double Taxation Avoidance Treaty with the Federal Germany Republic as per Notification dated 26th August 1985 held that the assessment of royalty or any fees for technical services should be made in the year in which the amounts a....
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....arlier decision of ITAT on the same issue in which the issue was decided by ITAT in favour of the assessee. These are decisions in ITA No.1957/Mum/2007 & C.O No.187/Mum/2007 dated 8/12/2008 in respect of assessment year 2001-02 and ITA No.2099/Mum/2007 & CO No.188/Mum/2007 dated 10/12/2008 for assessment year 2002-03 and relying on these decisions Ld. CIT(A) has decided the issue in favour of the assessee and deleted the addition, hence, the Department has raised Ground No.2. 7. At the outset it was submitted by ld. AR that this issue is consistently deciding in favour of the assessee by the ITAT and reference was made to the orders of ITAT rendered in respect of assessment year 2001-02, 2002-03 and 2003-04 and 2004-05. Copy of these order....