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2019 (5) TMI 1193 - AT - Income TaxTDS u/s 195 - payments made for software purchased by assessee - case of assessee is that it is across counter purchase, wherein the assessee does not acquire any copyright but it purchased copyrighted article for its application purposes - HELD THAT:- We hold that there is no merit in the orders of authorities below where the assessee has purchased shrink wrap software or off-shelf software, which is copyrighted article and not purchased any copyright and hence the same is not liable to deduct tax at source u/s 195. Hence, the assessee cannot be held to be liable for non deduction of tax u/s 201(1) and interest charged u/s 201(1A). We thus, direct the Assessing Officer to delete demand created u/s 201(1) and interest charged u/s 201(1A). The grounds of appeal raised by assessee are thus, allowed. Penalty u/s 271C of the Act for such non deduction of tax at source out of payment made for purchase of royalty - HELD THAT:- As already held that the assessee has not defaulted in non deduction of tax at source and hence, the assessee is not liable for any penalty u/s 271C. The grounds of appeal raised by Revenue are thus, dismissed.
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