Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 110 - AT - Income TaxRoyalty receipt - amount received by the assessee from providing users a right in off-the-shelf software and use of standard facilities and support services - HELD THAT:- As decided in own case [2020 (1) TMI 1177 - ITAT PUNE]such amount cannot be treated as ‘Royalty’ chargeable to tax. Rate of tax at which software and standard facility income should be charged to tax - AO charged the tax @ 40% - HELD THAT:- In view of our decision on grounds nos. 1 & 2 about non-taxability of these amounts, this ground has been rendered infructuous. Since the income itself is not chargeable to tax, there can be no question of rate of tax at which such income should be charged. Surcharge and Education Cess in the amount of tax charged by the AO under the Double Taxation Avoidance Agreement (DTAA) - HELD THAT:- From the computation of income, it can be seen that the income of the assessee which has been charged to tax under the regular provisions has also been subjected to Surcharge and Education Cess. In so far as the taxability of income under the DTAA is concerned, there are specific rates on which such incomes are chargeable to tax. Such rates cannot be further enhanced by Surcharge and Education Cess as has been held in the several decisions including the one dated 30-11-2015 relied by the ld. AR in DDIT (IT) Vs. The BOC Group Limited [2016 (1) TMI 414 - ITAT KOLKATA] - We, therefore, overturn the impugned order and direct not to charge Surcharge and Education Cess on the rates of tax under the DTAA. This ground is allowed. Levy of interest u/s.234D - HELD THAT:- As AR submitted that the assessee was not granted any intimation of refund u/s. 143(1) of the Income-tax Act, 1961 (hereinafter also called `the Act’), which ultimately turned out to be not refundable AO is directed to verify the factual scenario in this regard and decide the issue afresh as per law. Allowing lesser credit of TDS - HELD THAT:- AO is directed to examine the correct amount of TDS as per certificates and grant necessary credit as per law after allowing reasonable opportunity to the assessee.
|