TaxTMI 
TaxTMI 
2022 (5) TMI 1712
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.... same needs to be condoned in view of specific problem faced by the public on account of Covid-19 pandemic. 3. The learned DR, on the other hand, fairly agreed that delay may be condoned in the interest of justice. 4. Having heard both sides and considered reasons given by the learned AR, we find that the Hon'ble Supreme Court in suo motu Writ Petition No. 3 of 2020, has extended limitation applicable to all proceedings in respect of courts and tribunals across the country on account of spread of Covid-19 infections w.e.f. 15.03.2020, till further orders and said general exemption has been extended from time to time. We further noted that delay noticed by the Registry pertains to the period of general exemption provided by the Hon'ble Supreme Court extending limitation period applicable for all proceedings before Courts and Tribunals and thus, considering facts and circumstances of the case and also in the interest of natural justice, we condone delay in filing appeal filed by the assessee. 5. Brief facts of the case are that the assessee company is engaged in the business of software development. The assessee had filed its return of income for the assessment year....
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....case of M/s. Engineering Analysis Centre of Excellence Pvt. Ltd. Vs. CIT (2021) 125 taxmann.com 42 (SC) held that payment made by the Indian end users / distributors to non-residents for purchase of computer software is not royalty within the meaning of section 9(1)(vi) of the Act read with Article 12(3) of the DTAA between India and USA. 8. The learned DR, on the other hand, supporting order of the learned CIT (A) submitted that although, the issue is now covered by the decision of the Hon'ble Supreme Court in the case of M/s. Engineering Analysis Centre of Excellence Pvt. Ltd. Vs. CIT (supra), but fact remains that the assessee had made payments for purchase of various software and use of such software in the business of the assessee whether it is for use or resale needs to examined and thus, matter may be set aside to the Assessing Officer for further verification. 9. We have heard both the parties, perused material available on record and gone through orders of the authorities below. There is no dispute with regard to fact that payment made by the assessee to non-resident vendors of software without deduction of TDS on the ground that such payment is not in the nature....
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....e in nature and applicable to assessment year 2021-22 and thus, employees contribution to PF & ESI paid beyond due date specified under respective Acts, but within due date for filing return of income u/s. 139(1) of the Act is allowable deduction. In this case, there is no dispute with regard to fact that payment made by the assessee towards employees contribution to PF is on or before due date for filing of return of income u/s. 139(1) of the Act. Therefore, we are of the considered view that the Assessing Officer has erred in disallowing employees contribution to PF and thus, we direct the Assessing Officer to delete addition made towards disallowance of employees contribution to PF. 11. The next issue that came up for our consideration from ground No. 17 to 25 of the assessee appeal is transfer pricing adjustment on overdue receivables from AE, the assessee had extended overdue credit period to its AE. Therefore, the Assessing Officer had considered said overdue receivables as international transactions within the meaning u/s. 92B of the Income Tax Act, 1961, and imputed interest receivable on overdue receivables from AE. 12. The learned A.R for the assessee submitted....
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....uments of the AR for the assessee that delay in realization of receivables from AE beyond credit period is not a separate international transaction, we find that the definition of international transactions has been amended by insertion of clause (c) to explanation to Section 92B by the Finance Act, 2012 with retrospective effect from 01.04.2002, where the "capital financing including any type of long-term or short-term borrowing, lending or guarantee; purchase or sale of marketable securities or any type of advance, payments or deferred payments or receivables or any other debt arising during the course of business" are international transactions and hence delay in realization of receivables from AE beyond credit period constitutes a separate international transaction with effect from assessment year 2013-14 onwards. Therefore, we are of the considered view that there is no merit in the arguments taken by the assessee that delay in realization of AE receivables is not an international transaction. We further note that after the amendment to clause (c) of explanation to Section 92B of the Act, realization of receivables after abnormal delay beyond credit period would tantamount to ....