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2010 (9) TMI 715 - JHARKHAND HIGH COURTDTAA - TDS u/s 195(2) - Technical collaboration agreement - remittances to ESW - Deduction u/s 35AB - Held that: the words "lump sum' as used before the word "consideration' in section 35AB, only exclude periodical or turnover based payments like royalty etc., and any one-time payment for the know-how would fall within the expression "lump sum' if it is fixed and specified in the agreement, although it may be payable in instalments Regarding section 41(1)(a) - Held that: the reversal order by the Commissioner of Income-tax (Appeals) in appeal under section 248 against the orders under section 195(2) had not attained finality till much after the relevant assessment years, i.e., 1993-94, 1994-95 and 1995-96. The said reversal by the Com-missioner of Income-tax (Appeals) attained finality only on May 17, 1999, when the order of the Income-tax Appellate Tribunal rejecting the reference application of the Department under section 256(1) was served upon the assessee - Held that: that the deduction under section 35AB was liable to be allowed in the relevant assessment years and the refund, consequent upon the reversal of the Assessing Officer's TDS orders under section 195 by the CIT (A), became liable to be added under section 41 only on and after May 17, 1999 when such reversal order attained finality to the knowledge of the assessee - Decided in the favour of assessee
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