TaxTMI 
TaxTMI 
2022 (3) TMI 615
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....ioner of Income-Tax (Appeals) 'CIT(A)' under section 250 of the Income-tax Act, 1961 ('Act'), to the extent prejudicial to the Appellant, is bad in law and liable to be quashed. 2. That on the facts and in the circumstances of the case, the Learned CIT(A) has erred in upholding the reopening of assessment proceedings u/s. 147 of the Act. 3. That on the facts and in the circumstances of the case and in law, Ld.CIT(A) has erred in upholding disallowance amounting to Rs. 13,80,672 u/s 40(a)(i) of the Act. 4. That the learned CIT(A) erred in not granting TDS credit available to the company. 5. That the learned CIT(A) erred in law and facts in upholding the order of the learned Assessing Office....
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.... and the assessee . The assessee through its Rotary Wing R&D Centre (RWRDC) division has engaged M/s. CGTM France for conducting flight testing services in respect of these ALH Shakti Engines where the services provided by CGTM France included the following (i) Air intake Survey (ii) Engince bay, FACEC bay and oil cooling systems (iii) Engine Accessories and FADEC vibrations (iv) Measurement of gas concentration of fire extinguishing systems (v) Hot Fule tests During the year under consideration the assessee paid a sum of 477223 EUROs to CGTM for the above said technical assistance for Shakti Engince installation flight testing carried out in India and claimed he same as an expenditure. The Te....
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....nvoke the provisions of sec. 195 of the Act. However, the CIT(A) upheld the disallowance made by the AO on the ground that the nature of services rendered by CGTM France satisfies the condition "making available" and hence the assessee ought to have deducted tax at source on payments made to CGTM France. 7. Aggrieved by the order of the CIT(A), the assessee is in appeal before the Tribunal. 8. The ld.AR submitted that there was no technology that was made available by CGTM France to the assessee. The ld.AR drawn our attention to para 5.6 of the CIT(A)'s order where the CIT(A) himself has mentioned that this services to be provided by CGTM France were 'Strictly Limited' to the following resources:- i) 1 operating engineer over....
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....of the details of technical services provided by CGTM France to the assessee shows that the technicians/engineers of CGTM carried out Air intake Survey relating to Air inlet distortion and installation losses. On the basis of test results, the assessee would look into various issues involving in the Shakti Engine and would carry out the requisite test for improving its engine. The fees paid towards the services in question here is purely towards the testing of Shakti Engines in order to identify the issues of Air inlet distortion and installation losses. The subsequent action of the assessee to carry out the improvement based on the test results given by CGTM France cannot be considered as a basis for 'make available' services rendered by C....