9911796707
TMI Blog2015 (12) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... se appeals are common, they were heard together and disposed off by this common order for the sake of convenience. 2. The first issue in both these appeals of the Revenue is that Commissioner of Income Tax (Appeals) erred in deleting disallowance in respect of the amount paid to non-resident M/s. Fund Quest for the purpose of investment management and the Commissioner of Income Tax (Appeals) failed to appreciate the detailed reasoning given by the Assessing Officer to conclude that the payments made by the assessee to Fund Quest is in the nature of royalty. 3. Counsel for the assessee submits that the issue of disallowance under section 40(a)(i) on the payments made to Fund Quest for non-deduction of TDS under section 195 of the Act has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed information which is available in public domain. M/s. Fund Quest has merely compiled the information and transmitted the same to assessee. The authorities below termed the payments made by the assessee to M/s. Fund Quest for the services and data provided as 'Royalty'. We are of the considered opinion that such payments cannot be termed as 'Royalty' as defined under the provisions of the Act. The term 'Royalty' has been defined in Explanation (2) to Section-9, Sub-section-1, Clause-(vi) which is re-produced here in below: Explanation 2.-For the purposes of this clause, "royalty" means consideration (including any lump sum consideration but excluding any consideration which would be the income of the recipient c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CIT(Appeals) on the issue. Since, payments made to M/s. Fund Quest are not in the nature of 'Royalty' and the services were rendered abroad, no part of income had accrued or arisen in India. The assessee is not liable to deduct tax at source on the payments so made. The findings of the CIT(Appeals) on this issue are set aside and this ground of appeal of the assessee is allowed.' 6. Since the facts and circumstances being identical, following the said decision of this Tribunal, we uphold the orders of the Commissioner of Income Tax (Appeals) in deleting the disallowance and reject the grounds of appeal on this issue raised by the Revenue. 7. The next issue in the grounds of appeal of the Revenue is that the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal in assessee's own case for the assessment year 2008-09 deleted the disallowance, against which the Revenue is in appeal before us. This Tribunal while dealing with similar issue in assessee's own case for the assessment year 2008-09 observed as under:- "iv. The fourth ground of appeal of the assessee relates to repairs of lease-hold premises. The assessee has placed on record at Page No. 42 of the Paper Book, the nature of work carried out by the assessee in the leased office premises. The assessee has claimed the expenditure on civil work which includes demolition, painting, flooring and partition etc., amounting to Rs. 2,06,61,216/- as revenue expenditure. The authorities below have held the same to be capital expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nge to its structure as a result of the expenditure incurred by the assessee, it cannot be said that the expenditure incurred by the assessee is in the capital field. Further a perusal of the expenditure clearly shows that it is in the revenue field. In the circumstances we are of the view that the expenditure on the repairs and maintenance in the form of electrical fittings, electrification, cabinet, work station, partition, cupboard, stand etc. are liable to be treated as a revenue expenditure. In the circumstances, the orders of the learned CIT(A) and the Assessing Officer are reversed on this issue and the Assessing Officer is directed to grant the assessee the claim of revenue expenditure in regard to the said expenditure. Consequently ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
