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2016 (6) TMI 889 - AT - Income TaxTDS u/s 195 - applicability of provisions of Sec. 201(1) and 201(1A) - assessee purchased software from two nonresidents companies being in Singapore and Australia and made payments on acquisition of software - AA disallowed the said amount u/s.40(a)(i) of the Act for non deduction of TDS as the transaction is in the nature of Royalty payments - Indo-US DTAA - Held that:- Purchase of software is not in the nature of Royalty and no disallowance u/s.40(a)(i) of the Act is warranted. We set aside the order of ld. Commissioner of Income Tax (Appeals) concurred with the Assessing Officer in passing order u/s.201(1) and 201(1A) of the Act and allow the ground of the assessee. See Financial Software & Systems (P.) Ltd. Versus Deputy Commissioner of Income-tax/Assistant Commissioner of Income-tax, Company Circle II (1), Chennai [2014 (10) TMI 463 - ITAT CHENNAI] - Decided in favour of assessee
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