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2015 (12) TMI 889 - AT - Income TaxTds u/s 195 - disallowance under section 40(a)(i)in respect of the amount paid to non-resident M/s. Fund Quest for the purpose of investment management - non deuction of TDS - whether the payments made by the assessee to Fund Quest is in the nature of royalty? - Held that:- A perusal of the term of 'Royalty' as defined in the Act shows that it does not include any information provided in the course of advisory services. We do not agree with the findings of the CIT(Appeals) on the issue. Since, payments made to M/s. Fund Quest are not in the nature of 'Royalty' and the services were rendered abroad, no part of income had accrued or arisen in India. The assessee is not liable to deduct tax at source on the payments so made. The findings of the CIT(Appeals) on this issue are set aside - Decided in favour of assessee. Disallowance of expenditure incurred on improvement/renovation of leasehold building - CIT(A) deleted the addition - Held that:- The expenditure incurred by the assessee for demolition, painting, flooring, partition, modular and electrical works on the leasehold premises is revenue expenditure. Thus, we uphold the orders of the Commissioner of Income Tax (Appeals) on this issue and reject the grounds of appeal raised by the Revenue. See Sundaram BNP Paribas Asset Management Co. Ltd. v. ACIT [2011 (1) TMI 1242 - ITAT CHENNAI ] - Decided in favour of assessee.
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