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2014 (1) TMI 1877 - AT - Income TaxTDS u/s 195 - disallowance u/s 40(a)(i) in respect of the amounts paid by the assessee to M/s Abaqus In the case of, without deduction of tax at source - CIT-A deleted addition treating the same as not taxable in India under Section 9(1)(vi) - assessing authority has treated the payments in the nature of royalty as against payments towards purchase consideration, as argued by the assessee - HELD THAT:- This issue has already been decided by the ITAT, Chennai B-Bench in the case of Dassault Systems Simulia P. Ltd. (formerly known as Abacus Engineering Pvt. Ltd.) [2011 (9) TMI 207 - ITAT, CHENNAI] . After considering the issue and following the decision of Motorala Inc. v. DCIT [2005 (6) TMI 226 - ITAT DELHI-A] the Tribunal has held that the payment is not in the nature of income arising or accruing in India within the meaning of Section 9(1)(vi) and therefore, no taxability arises in India on such payments. The Tribunal held that it is a case of outright purchase and no income arises in India. In these circumstances, we follow the said order of the Tribunal and hold that the disputed payments are not assessable to tax in India - Decided in favour of assessee.
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