2017 (12) TMI 1833

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....;2. Shri S. Sridhar, the Ld.counsel for the assessee, submitted that the Assessing Officer disallowed a sum of Rs. 46,99,302/- for nondeduction of tax. According to the Ld. counsel, the assessee has paid co-location charges of Rs. 23,02,515/-. The Ld.counsel clarified that co-location charges is nothing but charges paid by the assessee outside the country for storage of electronic data. According to the Ld. counsel, the assessee transferred the electronic data through cable network and such data could be stored outside the country for the use of customers outside the country. For the purpose of keeping the electronic data in a manner which can be retrived by the customers outside the country, the assessee has paid storage charges which is k....

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....ble to pay tax in India, therefore, there cannot be any disallowance under Section 40(a)(ia) of the Act. 3. On the contrary, Shri AR.V. Sreenivasan, the Ld. Departmental Representative, submitted that the assessee has debited an amount of Rs. 62,88,522/- towards connectivity charges. The assessee clarified before the Assessing Officer that the co4 location charges was Rs. 23,02,515/- and international call charges was Rs. 23,93,863/-. The Ld. D.R. further submitted that the entire services and operations were made available by Cinenet Communications Inc. The Ld. D.R. further submitted that Novatel Ltd. provides international telecommunication services to the assessee. Referring to Explanation (vi) to Section 9(1) of the Act, the Ld. D.R. s....