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2014 (1) TMI 391 - ITAT MUMBAITDS u/s 194J - Whether payments made for computer software be considered as royalty or not – Held that:- There is no requirement to give specific direction on the applicability of the jurisdictional High Court judgment as it is binding on AO to follow the principles laid down by the Hon'ble jurisdictional High Court - AO is also directed to examine whether the principles laid down by the Hon'ble Bombay High Court in the case of CIT vs. Kotak Securities Ltd [2011 (10) TMI 24 - Bombay High Court] wherein the view that due to the bonafide belief if a person does not deduct the tax while making payment, then there can be no disallowance under section 40(a)(ia) of the Act. - This aspect also should be considered by AO - The issue was restored to the file of AO. Rectification of mistake - Disallowance under section 40(a)(ia) – Whether tax already paid by the deductee be recovered again from the assessee - Held that:- Since provisions of section 40(a)(ia) and section 201 operate in a different context, the Bench thought it fit not to give any specific direction but only to place on record the fact whether the recipient paid the taxes or not - This direction was already given in the order – Thus no direction can be given specifically for application.
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