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2010 (12) TMI 1174 - AT - Income TaxDemand u/s 201 (1) read with section 201(1A) in all assessment years - the facts of the case are that during the survey action u/s 133A , it was noticed by the ITO, that the assessee had engaged a UK based Non Resident as Advisor and had paid for AY 2001-02, AY 2002-03, or AY 2003-04, or AY 2004-05 for advisory services rendered by him. As the payment has been made to a non resident and it is covered under “any other sum chargeable under the provisions of the Act”, the two conditions are satisfied to attract the provisions of section 195. Further, the AO discussed the scope of total income as laid down in section 4(2) and section 9(1) (vii) which creates a deeming fiction and income by way of “fees for technical services” payable by resident person, such fees for technical services shall be deemed to accrue or arise in India. The AO accordingly passed orders u/s 201(1) r. w. s. 201(1A) and raised demand against the assessee. HELD THAT:- Considering the facts of the case, it is clear that the issue is now covered in favour of the assessee by the order of the Tribunal in the case of the same assessee for AY 2004-05 dated 02-07-2010. We have, therefore, no option except to follow the order of the co-ordinate bench of the Tribunal in favour of the assessee. By following the order of the Tribunal dated 02-07-2010, we set aside the order of the learned CIT(A) on merit in all the Four assessment years and quash the impugned order and delete the resultant demand u/s 201 (1) read with section 201(1A) in all assessment years. The learned CIT(A), was however, justified in holding that the impugned orders of the AO for AY 2001-02 and 2002- 2003 are time barred. The findings of the learned CIT(A) to that extent are confirmed.
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