2022 (3) TMI 1669

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....oner of Income Tax, Company Circle - VI(2), Chennai, dated 18.03.2014 for the Assessment Year 2010 - 2011 u/s. 143(3) of the Income-tax Act, 1961 (hereinafter 'the Act'). 2. The appeal of the Assessee is delayed by 128 days in filing the appeal due to the outbreak of "Covid-19" pandemic. From the perusal of the impugned order of Ld. CIT (A) dated 28.02.2020, it is evident that the limitation period was under lock-down because of pandemic which had posed serious challenges before all in making the required compliances. This has been taken note of the Miscellaneous Application No. 665 of 2021, 21 of 2022 and 29 of 2022 [in Suo Motto Writ Petition (c) No. 3 of 2020] of the order of the Hon'ble Supreme Court (Civil Original Jurisdi....

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....the Assessee has not deducted tax as required u/s. 195 of the Act, therefore the provisions of Section 40(a)(i) are attracted to disallow the said payment. 5. During the course of assessment proceedings, the Assessee submitted that the payment under reference is not subject to TDS, since the purchase of software license is in the nature of goods under the Sales Tax / VAT Act. However, the submissions of the Assessee were not accepted by the learned Assessing Officer who held that the payments of the Assessee towards the use of license for a software is a taxable income in the hands of the non-resident as it is a royalty income as per the Section 9(1)(vi) r.w.s. 115A of the Act and since the deduction of tax at source was not done on the ....

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....tion falls u/s. 9(1)(vi) of the Act is not valid and the corresponding ground of the Assessee was allowed. 8. We find that the present appeal before us on the identical facts is covered by the decision of the co-ordinate bench in the Assessee's own case of the immediately preceding Assessment Year 2009 - 2010, which had dealt with the very basis for sustaining the disallowance by the learned Commissioner of Income Tax (Appeals) in the first appeal and had held in favor of the assessee by allowing its claim for deduction for purchase of software license from M/s. Acqueon Technologies Inc. USA. IT is noted that in the present appeal before us, the assessee has purchased the software license from the same vendor i.e. M/s. Acqueon Technologi....