2025 (6) TMI 813

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pertaining to Assessment Year [AY] 2012-13 and the order of CIT(A) dated 17.01.2025 pertaining to AY 2020-21. 2. Both these appeals were heard together and disposed of by this common order for the sake of convenience and brevity. 3. None appeared on behalf of the assessee in spite of notice. Therefore, we decided to proceed exparte. 4. DR was heard at length, and case records were carefully perused. We will first address the grievance raised in ITA No. 2423/Mum/2025. ITA No. 2423/Mum/2025 5. The solitary grievance of the revenue is that the CIT(A) erred in deleting the disallowance of Rs. 7,65,58,000/- made u/s 40(a)(ia) of the Income-tax Act, 1961 [hereinafter referred to as "Act"] for non-deduction of TDS u/s 195 on payment....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....width, and therefore, cannot be constituted as royalty. Further, drawing support from the decision of the Hon'ble Madras High Court in the matter of Skycell Communications Services Ltd. 251 ITR 53, the CIT(A) deleted the disallowance of Rs. 7,65,58,000/- 8. Insofar as the disallowance of Rs. 3,94,00,000/- is concerned, the CIT(A) found that on Rs. 2,08,01,289/- paid in India, the assessee has deducted tax at applicable rates and on payment of Rs. 1,85,98,711/- paid by the overseas branch, the assessee has deducted tax as per the Philippines tax law. The CIT(A) deleted the disallowance of Rs. 3,94,00,000/-, further drawing support from the decision of the Hon'ble Delhi High Court in the case of Estel Communications Pvt. Ltd. 318 ITR 185. ....