TMI Blog2014 (7) TMI 1167X X X X Extracts X X X X X X X X Extracts X X X X ..... g in it. As far as the second issue is concerned, the Tribunal found that the royalty is not payable as required under Section 9(1)(i) of the Act or Article 12 of India-Netherlands DTAA. As it was a case of frequent purchases of software, the question of payment of expenses incurred on account of the import does not arise. Communication charges - as per ITAT the charges shall not be excluded from Export Turnover though Explanation 2 to Section 10A - Held that:- Tribunal has followed the decision of Coordinate Bench of the learned Tribunal in case of PATNI TELECOM (P) LTD. v. ITO [2012 (8) TMI 641 - ITAT, HYDERABAD]. This decision does not appear to have been upset by higher foram Foreign exchange fluctuation arisen on account of conv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee from M/s.GE Network Technologies, Netherlands disallowance under Section 40(a)(i) of the Income Tax Act 1961 is not applicable despite the fact that the licenses are for the use of copyrighted article and the payments would be taxable as royalty? (ii) In the facts and circumstances of the case, whether the Hon ble Tribunal (ITAT) is correct in law in holding that article of Indo Netherlands treaty does not include payments to license for use copy right article under the definition of royalty without appreciating the fact that article 12 does not prohibit inclusion of such payments? (iii) In the facts and circumstances of the case, whether the Hon ble Tribunal (ITAT) is correct in law in directing that the communication charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses incurred on account of the import does not arise. The other issues raised in this matter are covered by earlier judgment of the Tribunal. While deciding the issue on third question, the learned Tribunal has followed the decision of Coordinate Bench of the learned Tribunal in case of PATNI TELECOM (P) LTD. v. ITO [1]. This decision does not appear to have been upset by higher fora. The fourth question raised by the appellant has been decided by the learned Tribunal following the decision of the Tribunal in case of SANYO LSI TECHNOLOGY INDIA PRIVATE LIMITED v. DEPUTY COMMISSIONER OF INCOME TAX [2] which was decided following Supreme Court decision in case of SUTLEJ COTTON MILLS LIMITED v. CIT. As far as fifth question is co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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