Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 600 - AT - Income TaxTDS u/s 195 - Disallowance u/s. 40(a)(i) - non deduction of tds on payment as ‘Royalty’ covered u/s. 9(1)(vi) read with Explanation 2 (iva) and Explanation 5 - assessee failed to withhold tax on the payment made to Amazon - DTAA - Held that:- As decided in assessee's own case [2018 (10) TMI 1434 - ITAT PUNE] Explanation 5 has been inserted to section 9(1)(vi) by the Finance Act, 2012 with retrospective effect on 01-06-1976 and since the payment had already been made before the insertion of the provision, no deduction of tax at source could have been made. The Tribunal further observed that there was no amendment in the DTAA between the two countries analogous to the Explanation 5 to section 9(1) of the Act and accordingly Amazon was not chargeable to tax in respect of Web hosting charges received from the assessee in India. The Tribunal still further held that the amount paid to Amazon, at the first instance, was not in the nature of royalty itself. DR fairly admitted that the facts and circumstances prevailing in the instant year are mutatis mutandis similar to those of preceding years. Respectfully following the precedent, I overturn the impugned order on this score and order for the deletion of addition of made and confirmed by the authorities below. - Decided in favour of assessee.
|