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2015 (9) TMI 710 - AT - Income TaxDisallowance under section 40(a)(ia) - non deduction of TDS - assessee has paid a sum as licence fee in respect of two softwares named MBIL Star Diagnostics and MBIL E-Deale - retrospectivity of amendment - Held that:- The view entertained by the assessee is supported by the decision of the hon'ble Delhi High Court in the case of Infrasoft Ltd. [2013 (11) TMI 1382 - DELHI HIGH COURT]. Since the assessee was held to be liable to deduct tax on the basis of subsequent amendment brought in with retrospective effect, in view of various decisions referred to above, we have to hold that the assessee cannot be held responsible for violation of TDS provisions on the basis of a subsequent amendment. Accordingly, we are of the view that the Assessing Officer was not justified in disallowing the licence fee/service charges paid for use of softwares by invoking the provisions of section 40(a)(ia) of the Act - Decided in favour of Assessee.
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