9911796707
TMI Blog2015 (10) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance 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 paid by the assessee to the authors of the book is royalty and, therefore, the assessee has to deduct tax u/s 194J. Referring to provisions of section 194J of the Act, the ld.representative submitted that Explanation (ba) to section 194J clearly says that the term "royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9. Referring to section 9, more particu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, 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 Rs. 20,000 to the authors of the book without deducting tax. The business of the assessee is printing and publication of books for the students. 6. We have carefully gone through the provisions of section 9(1)(vi) which reads as follows: "9(1) The following incomes shall be deemed to accrue or arise in India:- (i) To (v)(c) xxxxxxxxxxxxxxx (vi) income by way of royalty payable by - (a) The Government; or (b) By a person who is a resident, except where the royalty is payable in respect of any right, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der 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 with proposals approved by the Central Government before that date; so, however, that, where the recipient of the income by way of royalty is a foreign company, the agreement shall not be deemed to have been made before that date unless, before the expiry of the time allowed under sub-section (1) or sub-section (2) of section 139 (whether fixed originally or on extension) for furnishing the return of income for the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 cinematographic films; or (vi) The rendering of any services in connection with the activities referred to in sub-clauses (i) to (iv), (iva) and (v). Explanation 3. - For the purposes of this clause, "computer software" means any computer programme recorded on any disc, tape, perforated media or other information storage device and includes any such programme or any customized electronic data;" 7. Admittedly, the recipient of the amount being the li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ork. 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 separately; hence, it may not have any connection with television or radio broadcasting. This distinction or use of coma in between the words "copyright" "literary" was not considered by the Mumbai Bench of this Tribunal in Majestic Prakashan (supra), therefore, it may not be applicable to the facts of this case. In the case before us, the payment was admittedly made for copyright / literary work; hence it has to be considered as royalty. Hence, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
