TMI Blog2019 (8) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of expenses. Purchase of software license is concerned, the Tribunal (supra) has discussed by holding that it was a case of purchase of copyrighted article which could not be considered as Royalty. Payment of I.T. Support service charges , the Tribunal (supra) held that the payment of I.T. Support charges, i.e. Internet charges, use of e-mail charges and backup support services etc. could not be considered as Royalty as no technology was made available to the assessee and it was only a service provided to the assessee by its USA Associated Enterprise. Enhancement made by the ld. CIT(A) on Reimbursement of salary paid to expatriates - Tribunal (supra) came to the conclusion that such an amount was not in the nature of ` ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same is, therefore, deleted. - ITA No.1254/PUN/2017 - - - Dated:- 22-7-2019 - Shri R.S. Syal, Vice President And Shri Partha Sarathi Chaudhury, Judicial Member For the Assessee : Shri Nikhil Pathak And Ms. Sukhada Choudhary For the Revenue : Shri Sardar Singh Meena, CIT ORDER PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by the Commissioner of Income-tax (Appeals) on 20-03-2017 in relation to the assessment year 2007-08. 2. Briefly stated, the facts of the case are that the assessee filed its return declaring loss of ₹ 76,890/-. The assessment was completed u/s.143(3) r.w.s. 144C of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed line charges on which no deduction of tax at source was made. This constituted the basis for the present addition u/s.40(a)(i) of the Act. The AO was inspired to initiate the reassessment proceedings on the basis of an order passed in the case of the assessee u/s.201(1)/201(1A) of the Act for the year under consideration, by which the assessee was treated as assessee in default in respect of the above referred payments. When the assessee preferred appeal against the order passed u/s.201(1)/(1A) before the ld. CIT(A), the ld. first appellate authority, similar to the action taken in the impugned order, also resorted to enhancement with reference to the amount of tax deductible on Reimbursement of expatriate salaries and Payment made on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered as Royalty as no technology was made available to the assessee and it was only a service provided to the assessee by its USA Associated Enterprise. 4. In sofaras the items of enhancement made by the ld. CIT(A) are concerned, we find that the first item is Reimbursement of salary paid to expatriates. The Tribunal discussed this issue on page 88 page 107 of its order and came to the conclusion that such an amount was not in the nature of `fees for technical services as the assessee had deducted tax at source from such salary payments u/s.192 of the Act. On the last item of enhancement, namely, Payment made on account of web based training, the Tribunal discussed this issue on pages 87 and 88 of its order and finally hel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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