TMI Blog2014 (3) TMI 1154X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing the same method of deducting TDS at the time of effecting the payments and depositing the same within the time prescribed u/s.200(1) of the Act and the Revenue has accepted the same. We do not find any infirmity in the impugned orders. The appeals of the Revenue are dismissed being devoid of merit. - I.T.A. Nos. 167, 168 And 169/Mds/2013 - - - Dated:- 11-3-2014 - Dr. O.K. NARAYANAN, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER For The Appellant : Shri T. N. Betgeri, JCIT For The Respondent : Shri Raghunathan.S, Advocate ORDER PER VIKAS AWASTHY, JUDICIAL MEMBER: The set of three appeals for the Assessment Years (AYs) 2003 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d time. However, the tax deducted in the last quarter of the Financial Year has been paid in the next Financial Year. The CIT(Appeals) further observed that the assessee has been following this practice for the past several years and even in the AYs subsequent to the AYs under consideration, the assessee is following the same practice. The assessee has furnished complete details of the tax deducted at source and deposited in the Government Exchequer. The CIT(Appeals) concluded that the liability of the assessee to deduct TDS on Royalties and fee for technical services arises in the year in which such payments were actually paid by the assessee. The CIT(Appeals) deleted the addition made by the Assessing Officer u/s.40a(i) and allowed the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernational Taxation {(2012) 6 TMI 328-ITAT Delhi}. ii. CSC Technology Singapore Private Limited, Singapore vs Assistant Director of Income Tax (ITAT Delhi, date of announcement 17.02.2012). iii. DCIT vs. UHDE GMBH (1996) 54 TTJ 355 (Bom). iv. National Organic Chemical Industries limited versus DCIT (2006) 5 SOT 317 (Mum) . The CIT(Appeals) after considering the same and the facts of the case has held as under: 6.4.1. In view of the above discussed decisions as the income of the recipient of the royalty and fees for technical services becomes liable to be taxed on the receipt basis under the Income Tax Act, the liability to deduct TDS on such pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also support the claim of the appellant. In view of the above discussion and respectfully following the decisions as discussed above, I hold that the liability of the appellant to deduct TDS on a royalties and fees for technical services would arise in the year in which such payment is actually made by the appellant. The AO, therefore, is directed to delete the aforesaid disallowances made on account of non-deduction of TDS under section 40(a)(i). The grounds of appeal with regard to this issue, therefore, are allowed . We find that the order of the CIT(Appeals) is well reasoned and detailed. The assessee has been consistently following this method of deducting and depositing of tax at source for the past ..... X X X X Extracts X X X X X X X X Extracts X X X X
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