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TMI Blog2014 (1) TMI 1281X X X X Extracts X X X X X X X X Extracts X X X X ..... r passed by the Assessing Officer (AO) on 05.08.2010 u/s 143(3) read with section 144C(13) of the Income-tax Act, 1961 (hereinafter also called 'the Act') in relation to the assessment year 2007-2008. 2. The only issue raised in this appeal is as under:- "On the facts and in the circumstances of the case, the learned Assistant Director of Income-tax (IT) 3(1) has erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g for Information Technology buyers, users and vendors. The assessee sells subscription to its Indian customers / subscribers by providing them access to its products over the internet from its data server which is located outside India. The Indian subscribers pay the subscription / access fee to the assessee. During the previous year relevant to the assessment year under consideration, the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the relevant material on record. At the very outset, the learned Departmental Representative relied on the judgment of the Hon'ble Karnataka High Court in the case of CIT (IT) v. Wipro Ltd. [(2011) 203 Taxman 621 (Kar.)] and submitted that Wipro Ltd. a customer of the present assessee made payment without deduction of tax at source u/s 195 of the Act. When the matter finally came up before the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010] vide its order dated 08.01.2012 considered both the judgments and thereafter took a view in favour of the assessee by holding that the amount was in the nature of 'business profits' and not 'royalty'. The said decision of the Mumbai Bench was subsequently followed by the Mumbai Bench in another case and the Pune Bench of the tribunal in Allianz SE v. ADIT (IT) [(2012) 51 SOT 399 (Pune)]. In v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ...". We are unable to see as to how the contrary view expressed by the Tribunal in three orders can be adopted in the case of the payee-assessee, when the Hon'ble Karnataka High Court has rendered judgment on the very same transaction in the hands of the payers. If the argument tendered by the ld. AR is accepted, it would amount to delivering an opinion contrary to that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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