TaxTMI 
TaxTMI 
2025 (3) TMI 2122
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....operating within the health care market, focusing on the production of hardware and disposable products in the critical area. During the year consideration, the assessee has sold software and up gradation software to Maquet Medical India Private Limited ('Maquet India'). The assessee received payment from Maquet India towards the same. The AO treated the payment received by the assessee as Royalty and accordingly added the same as income of the assessee taxable in India for all the AYs under consideration i.e. AY 2015-16 to AY 2017-18 as tabulated below AY Amounted added as Royalty taxable in India - Rs. 2015-16 1,92,06,247 2016-17 4,74,98,440 2017-18 3,14,24,860 3. On further appeal the CIT(A) deleted the additio....
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.... of the provisions of a Double Taxation Avoidance Agreement or otherwise m. Any other case or class of cases where in the opinion of the Board it is necessary to contest in the Interest of justice or revenue and specified so by a circular issued by Board in this regard." 5. From the perusal of above it is clear that for the purpose of applicability of the above exception, the appeal should first arise out of the dispute relating to TDS/TCS matters before going into the applicability of clause (ii). In this regard it is relevant to take note of the following observations of the Hon'ble Bombay High Court in the case of CIT vs V M Salgoaonkar and Brothers (P) Ltd. [(2024) 169 taxmann.com 597 (Bombay)] "31. In any event....
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.... as a deduction on which tax was not deducted would be disallowed. 32. The present appeals raise one of the question as to whether the respondent is entitled to a deduction of the expenses incurred by it by way of making a payment to Marriott International Inc. because it had not deducted at source under section 195 on such payment. In our opinion, this issue would not fall within the scope and ambit of clause (1). This is brought out by the manner in which the tax effect has to be determined. The appeals arising from regular assessments where an expense is disallowed or a claim for an allowance is disallowed or an amount is sought to be assessed as income is dealt with in para 5.1. In these circumstances, the tax effect is calcula....
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....e present appeals, the original order which was passed arises from an assessment framed under section 143(3) and, therefore, the exclusion contemplated in para 3.1.1 would not apply and, accordingly, the appeals must be dismissed as withdrawn." (emphasis supplied) 6. The ratio laid down in the above case by the Hon'ble High Court is that for an appeal to fall within the exception under clause 3.1(1), then the same should emanate from the orders passed under section 201, 201(1A) etc. In assessee's case the appeal is arising out of the order passed under section 143(3) r.w.s 144C(3) and therefore in our considered view the ratio laid down would be applicable to the present case. Accordingly the revenue's appeals for AY 2015-....