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2017 (11) TMI 311 - AT - Income TaxClaim for exemption under section 10(23C)(vi) - Held that:- It would be in the fitness of things, the matter is restored back to the file Assessing Officer to make the assessment afresh, of course after awaiting the order of the CBDT on assessee’s application for grant of approval under section 10(23C)(vi) of the Act, as has been directed by the Hon'ble Supreme Court in AMERICAN HOTEL & LODGING ASSOCIATION EDUCATIONAL INSTITUTE case(2008 (5) TMI 17 - SUPREME COURT OF INDIA). The Assessing Officer is further directed to ascertain, at the earliest, the status of assessee’s application pending before the CBDT and in the course of such an exercise he ought to bring it to the notice of the CBDT the statutory time limit, if any, applicable to make the ensuing assessment, so that the disposal of the application pending with the CBDT is carried out expeditiously. Needless to mention, the assessee is expected to render appropriate co-operation to the income-tax authorities in the matter. Even on the claim of expenses incurred by the Head Office on behalf of its Indian Branch, the matter is sent back to the Assessing Officer to be adjudicated afresh in accordance with law only after awaiting the outcome of the assessee’s application pending with the CBDT. Thus, we hereby set-aside the order of the CIT(A) and restore the matter to the file of the Assessing Officer to make a denovo assessment in accordance with law, after affording the assessee a reasonable opportunity of being heard. Thus, for assessment year 2007-08, the appeal of the assessee is allowed for statistical purposes. Payment made towards books cannot be treated as royalty - Held that:- Findings of the CIT(A) that the HO has supplied the books to the appellant branch for distribution among students in India. The books belongs HO on which expenditure is incurred by the Head Office. However the cost of books is apportioned to branch in proportionate of cost for which the CPA has given the cost of material supplied. Further, find that the AO himself allowed deduction of cost of books amounting to ₹ 3,56,567 towards cost of books on the basis of evidence submitted by the appellant. It is also seen that books made available to branch by HO does not make available the technology hence, it cannot be considered as fees for technical services within the meaning of Article 12(4) of Double Taxation Avoidance Agreement In the light of above the observation of the AO is without any basis . Hence the payment made towards books cannot be treated as royalty /fees for technical services. This ground is therefore allowed. No cogent reasoning or material brought out by the Revenue, which would require us to interfere with order of the CIT(A) - Decided against revenue.
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