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2016 (6) TMI 1159 - AT - Income TaxTDS u/s 194J - non deduction of tds on cost of purchase of software - disallowance u/s 40(a)(ia) - Held that:- From the facts of the case is it is apparent that the assessee is only buying the software and selling the same in the open market, thus he is acting only in the capacity as distributor/agent or as trader. The end user of the software obtains the code from the software developer for using the software embedded in the CD. Thus, there is a continuous relationship between the software developer and the end user. Thus the provisions of the Act relating to tax deducted at source will not apply and hence, provisions of section 40(a)(ia) of the Act cannot be invoked. See The Principal Commissioner of Income Tax-6 Versus M. Tech India P. Ltd. [2016 (1) TMI 812 - DELHI HIGH COURT] - Decided in favour of assessee
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