2018 (6) TMI 1859

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....come of Rs.14,31,93,005/-. The assessee has also shown book profit of Rs.14,47,69,188 u/s 115JB of the Act and the case was selected for scrutiny under CASS and notices u/s 143(2) and 142(1) were issued and duly served on the assessee. The assessment proceedings were completed u/s 143(3) on 12-01-2016 determining total income at Rs.15,81,09,830/- by making addition of Rs.1,36,88,992/- on account of export commission and Rs.12,27,833/- in respect of content and software development expenses u/s 40(a)(ia) of the Act. Aggrieved by the aforesaid additions, the assessee preferred appeal before CIT(A). 3. Before the CIT(A), with regard to the addition on account of export commission of Rs.1,36,88,992/-, the assessee submitted that the commission....

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....012-13 and also by following the judgement of Hon'ble Madras High Court in the case of CIT vs Farida Leather Company 66 taxmann.com 321, deleted the addition. 4. With regard to the other issue of disallowance of Rs.12,27,833/- in respect of content and software development expenses u/s 40(a)(ia), the Ld.CIT(A) observed that the assessee had debited a sum of Rs.15,10,985/- as content and software development expenses to its profit and loss account during the year and had deducted TDS on Rs. 11,14,7487-. The AO asked the assessee to explain why the balance amount should not be disallowed u/s.40(a)(ia) of the Act. In response, the assessee submitted that it had not deducted TDS on payment of content development expenses to the tune of Rs.3,96....

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....ting the fact that these payments are in the nature of royalty, 4. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in not considering the decision in the case of High Court of Karnataka in case of CIT vs. Synopsis International Old Ltd (212 taxman 454), Mumbai Tribunal's decision in the case of DDIT(IT) Vs. Reliance Infocom Ltd ( 39 taxman Co 14O) and decision of AAR (IT), New Delhi in the case of Citrix Systems Asia Pacific Pvt. Ltd. (AAR No 822 of 2009)." 6. We have heard the parties and perused the material placed before us. We find that both the issues have been considered by the the ITAT, Mumbai Bench "G" for AYs 2011-12 and 2012-13 in ITA Nos.247 & 248/Mum/2016 in order dated 26-02-2018 ....