2024 (12) TMI 104

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.... the assessee has challenged order u/s 250 dated 22.03.2024 passed by CIT(A)", Chennai. 2.0 The only issue in this case is regarding an addition of Rs. 14,44,380/- added by the revenue by the order u/s 201(1) / 201(1A) dated 31.03.2017. The Ld. Counsel for the assessee informed that it had remitted an amount of Rs. 14,44,380/- towards purchase of software to a US based company namely XY enterprises Inc. The Ld. AO held the view that explanation-IV to section 9(1) (vi) of the IT act as amended by finance act 2012 postulates that amounts paid for right to use computer software would tantamount to income of the deductee within the meanings of that section and therefore TDS deduction u/s 40(a)(i) was required to be done. Consequently by plac....

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....ribunal in the case of AMEC foster wheeler India Pvt Ltd vide order dated 03.08.2022 in ITA No.799/Chny/2017 has held as under: "....We have heard the rival contentions and had gone through the facts and circumstances of the case. The brief facts of the case are that the assessee has purchased off-the-shelf software products which are in the nature of Microsoft Office [MS Office], IBM Lotus Notes, AVEVA, Auto CAD, etc. The claim of the Assessee is that the said expenditure merely represents the cost-to-cost reimbursement of the expenditure incurred on behalf of the Assessee. The Assessing Officer has held the nature of payment to be royalty and had disallowed the expenditure on account of the non-withholding of taxes under Section ....

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....cts being the same, the decision is squarely applicable in this case. Accordingly, the Assessing Officer's decision is correct and the objections are not accepted." Aggrieved, the Assessee is in appeal before the Tribunal. 16. We noted that during the year 2011 - 2012 relevant to the Assessment Year, the Assessee debited an amount of Rs. 7,79,78,139/- under computer software and maintenance. According to the Assessing Officer, the Assessee has to deduct Tax Deducted at Source [TDS] and under the Domestic Law the above payment is treated as "Royalty" and is taxable in India u/s. 9(1) Explanation (vi)(b) of the Act and the Assessing Officer on the directions of the Dispute Resolution Panel had made the addition of this c....