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2019 (8) TMI 570 - HC - Income TaxTDS u/s 195 - Tribunal upholding the direction of CIT (A) not to disallow u/s.40(a)(i) of the Act particularly when royalty payments are hit by section 195 - HELD THAT:- At the very outset, we have to say that the reliance on the Circular by the D.R. is misplaced as that Circular refers to the decision of the Tribunal Special Bench, Vishakhapatanam in the case of Merilyn Shipping & Transports Vs. Addl. CIT [2012 (4) TMI 290 - ITAT VISAKHAPATNAM] . The Circular also refers to the decision of the Hon'ble High Court of Gujarat, High Court of Allahabad which all relates to the issue relating to “paid or payable” whereas the issue before us relates to the amendment of second proviso to Section 40(a)(ia) which has been held to have a retrospective effect by the Hon'ble High Court of Delhi in the case of Ansal Landmark Township Pvt. Ltd. [2015 (9) TMI 79 - DELHI HIGH COURT] However, in the interest of justice and fair play, we restore this issue to the files of the A.O. The assessee is directed to furnish necessary evidences to show that the payee has filed returns and offered the sum received to tax. The A.O. is directed to verify the same and decide the issue in the light of the ratio laid down by the Hon'ble High Court of Delhi (supra).
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