TMI Blog2015 (10) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... publication for the use of the students, this Tribunal is of the considered opinion that the payment has to be treated as royalty. The co-ordinate bench of this Tribunal in the case of Majestic Prakashan (2012 (8) TMI 558 - ITAT, MUMBAI) found that the literary work was not used for radio broadcasting and hence the payment made by the assessee cannot be treated as royalty within the meaning of Explanation 2(v) to section 9(1)(vi) of the Act. Accordingly, the Mumbai Bench of this Tribunal found that the assessee was not expected to deduct tax u/s 194J of the Act; hence, there is no question of any disallowance u/s 40(a)(ia) of the Act. We find that in Explanation 2(v) to section 9(1)(vi) of the Act after the words “copyright” and “litera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mar, CIT ORDER Per N.R.S. Ganesan (JM) All the three appeals of the assessee are directed against the common order passed by the CIT(A), Kozhikode dated 03-08-2013 for the assessment years 2007-08, 2008-09 and 2009-10. Since common issue arises for consideration we heard all the appeals together and are disposed of by this common order. 2. The only issue arises for consideration is disallowance u/s 40(a)(ia) of the Act for non deduction of tax u/s 194J of the Act. 3. Shri CBM Warrier, the ld.representative for the assssee submitted that the assessee is a co-operative society engaged itself in printing and publication of books for the students. According to the ld.representative, the assessing officer found that what was pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educt tax at source. 4. On the contrary, Shri M. Anil Kumar, the ld.DR submitted that admittedly, the assessee paid exceeding ₹ 20,000 without deducting tax to the authors of the book. The assessee has also paid royalty. Payment of royalty in respect of any copyright, literary, artistic or scientific work would fall within the definition of royalty as defined in section 9(1)(vi) of the Act. Therefore, according to the ld.DR, the CIT(A) has rightly confirmed the addition. 5. We have considered the rival submissions on either side and also perused the material available on record. It is not in dispute that the assessee paid exceeding ₹ 20,000 to the authors of the book without deducting tax. The business of the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government: Provided further that nothing contained in this clause shall apply in relation to so much of the income by way of royalty as consists of lump sum payment made by a person, who is a resident, for the transfer of all or any rights (including the granting of a licence) in respect of computer software supplied by a non-resident manufacturer along with a computer or computer-based equipment under any scheme approved under the Policy on Computer Software Export, Software Development and Training, 1986 of the Government of India. Explanation 1.- For the purposes of the first proviso, an agreement made on or after the 1st day of April, 1976, shall be deemed to have been made before that date if the agreement is made in accordance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty; (iii) The use of any patent, invention, model, design, secret formula or process or trade mark or similar property; (iv) The imparting of any information concerning technical industrial, commercial or scientific knowledge, experience or skill; (iva) the use or right to use any industrial, commercial or scientific equipment but not including the amounts referred in section 44BB; (v) The transfer of all or any rights (including the granting of a licence) in respect of any copyright, literary, artistic or scientific work including films or video tapes for use in connection with television or tapes for use in connection with radio broadcasting, but not including consideration for the sale, distribution or exhibition of cinematog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 9(1)(vi) of the Act after the words copyright and literary the legislature uses punctuation mark coma (,). It is well settled principles of law that while interpreting taxation statutes the punctuation marks cannot be ignored. The use of coma after the words copyright , literary , artistic or scientific work clearly shows that the legislature intended to treat the words copyright , literary independent of artistic or scientific work. In respect of artistic or scientific work, the legislature intended to include films or video tape for use in connection with television or radio broadcasting. Since the legislature uses coma (,) in between copyright literary both the words have to be treated independently and separate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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