2013 (5) TMI 45

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..... ging the order passed by the Tribunal holding that the company cannot be regarded as a defaulter under Section 201(1) of the Income Tax Act and consequential interest under Section 201(1A) is not leviable and directing cancellation of the same. 2. The assessee entered into a Collaboration Agreement with M/s. GE Information Technology Inc., USA(GEMS IT, USA). According to the contract, the USA com .....

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..... which is supported by the letter dated 09.07.2002 issued by US Company. The Assessing Officer held that the agreement was not cancelled but only the payment of royalty was cancelled. Therefore, he passed an order under Section 201(1) of the IT Act raising demand of tax of Rs.30,46,188/- and also held that the interest is payable thereon. 3. Aggrieved by the said order, the assessee preferred an a .....

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..... record, it is clear that agreement with regard to payment of royalty was cancelled, no royalty was payable and therefore, the question of deducting TDS on such royalty does not arise. These facts are not in dispute. Therefore, in the facts and circumstances of the case we are of the view that the order passed by the Tribunal is correct. Hence, we pass the following order: Appeal is allowed. Inso .....

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