TMI Blog2012 (9) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... ) - which in our opinion is expansive enough to cover payments of the kind as the Court has now to deal with – we feel that no substantial question of law arises for consideration - in favour of assessee. - ITA-576/2012 - - - Dated:- 18-9-2012 - MR. S. RAVINDRA BHAT MR. R.V. EASWAR JJ. Appellant: Mr. Deepak Chopra, Sr. Standing Counsel. MR. JUSTICE S.RAVINDRA BHAT (OPEN COURT) The Revenue seeks to appeal against the order of the ITAT dated 25.11.2011 in ITA No.2560/Del/2011. It is urged that the impugned order so far as it allowed the assessee deduction of Rs.23,96,362/- paid as upfront fee and a further sum of Rs.20,000/- on account of bank charges is in error of law. 2. The assessee, a foreign company registered in Bangk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in the manner laid down in paragraph 13.1 of the agreement. In addition to the above, the agreement provided that taxes, if any, on the aforesaid payment were to be borne by the assessee vide paragraph 13.5 of the said agreement. After approval of the said technical collaboration agreement by the appropriate authorities, the assessee applied under section 195(2) of the Income-tax Act, 1961 (hereinafter referred to as the Act for short) to the Assessing Officer (hereinafter referred to as the AO ), for grant of permission to remit the said consideration without deduction of tax at source. 9 The Assessing Officer passed orders directing the assessee to deduct TDS under section 195(2) of the Act directing the assessee to deduct TDS while ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt seeking reference under section 256(1) of the Act (as the said section stood in the relevant years). The orders rejecting the reference applications of the Department under section 256(1) by the Income-tax Appellate Tribunal were served upon the assessee on May 17, 1999, that is to say in the financial year relevant to the Assessment Year 2000-01. Thereupon the 10 assessee credited the refunded amounts in its audited accounts drawn up for the said financial year ending March 31, 2000 corresponding to the Assessment Year 2000-01 in accordance with section 41 of the Act. XX XX XX XX XX So far as the first question is concerned, we find from section 35AB that deduction is permissible in respect of any lump sum consideration for acq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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