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2015 (7) TMI 843 - AT - Income TaxTDS liability u/s 195 - whether the payment made by the assessee company for purchase of software amounts to royalty and hence the same subject to TDS? - Held that:- The issue is squarely covered in favour of the assessee by the said decision of Hon’ble jurisdictional High Court in the case of DIT Vs. Ericsson AB (2011 (12) TMI 91 - Delhi High Court ) and DIT Vs. Nokia Network Oy (2012 (9) TMI 409 - DELHI HIGH COURT ). We further held that the CIT(A) was quite correct and justified in holding that the consideration paid by the assessee for purchasing of embedded software was to be treated as consideration for supply of goods and therefore, the same was taxable as business income and not as royalty. It was also held that therefore, the payments made by the assessee is not chargeable tax in India and hence not subject to withholding tax u/s 195 of the Act. We are unable to see any perversity ambiguity or any other valid reason to interfere with the finding and conclusion of the CIT(A) and hence we upheld the same. Accordingly, the sole issue/ground raised by the Revenue in both the appeals being devoid of merits is dismissed. - Decided in favour of assessee.
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