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2024 (5) TMI 590 - ITAT DELHIDisallowance u/s 14A r.w.r. 8D - Expenditure incurred on earning exempt income - Sufficiency of own funds/interest free funds - HELD THAT:- The factual finding of learned first appellate authority that the assessee had enough surplus interest free funds to take care of the investments made in exempt income yielding assets could not be controverted by the Revenue. That being the factual position on record, keeping in view the settled legal principles, we do not find any infirmity in the decision of learned first appellate authority in deleting the disallowance made u/r 8D(2)(ii). TDS u/s 195 - Disallowance u/s 40(a)(i) - assessee has paid an amount in foreign currency towards domain name registration - HELD THAT:- The registrar is merely a facilitator in connecting the applicant to the registry database to check uniqueness of domain name. Once the uniqueness of applied domain name is checked, the registration of domain name is automatic on the payment of requisite fee. He has recorded a factual finding that the user of domain name has not even iota of knowledge about the code piece/computer program. Therefore, there cannot be any question of its usage/exploitation. The assessee has merely got right to use the functionality based on the computer program and not the computer program itself. The assessee has not exploited the code piece in any manner. Thus, he has concluded that the payments made cannot be treated as royalty under section 9(1)(vi) of the Act, nor Fee for Technical Services under Article 12(3) of India – US DTAA. From the aforesaid observations of learned first appellate authority, it becomes quite clear that the payments made were not for use or right to use of any software, equipment, process etc. The Revenue has failed to bring any cogent evidence on record to controvert the factual finding of learned first appellate authority and establish on record that the payment made is for use or right to use of any computer software/program, equipment/process etc., as defined under section 9(1)(vi) of the Act. That being the case, we concur with the decision of learned first appellate authority on the issue.
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