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2021 (3) TMI 784 - AT - Income TaxRectification u/s 154 - TDS u/s 195 - Non deduction of TDS - payments made to non-residents - whether the TDS has been made by the assessee or not and since the assessee had made TDS on the payments made to non-residents, the AO ought to have deleted the disallowance to expenses made in the original order of assessment? - HELD THAT:- Issue that was remanded by the Tribunal in the order dated 03.05.2017 was only to verify whether the assessee had made TDS. The question whether expenditure can be regarded as capital in nature has already been decided by the DRP in its direction dated 29.11.2018 and the DRP has already held that the expenditure in question cannot be regarded as an expenditure of capital in nature. The aforesaid directions of the DRP has not been challenged either by the Assessee or the revenue and have become final. Therefore, the AO while giving effect to the order of the Tribunal, was not competent to go into the question as to whether the expenditure of software is capital or revenue in nature. In the light of the DRP’s findings which we have already extracted above there cannot be any debate or doubt on the claim of the assessee and the AO’s Order Giving Effect to the directions of the Tribunal suffer from an apparent mistake from the face of the record and therefore the proceedings under section 154 of the Act were justified. We, therefore, direct that the deduction claimed by the assessee should be allowed.
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