TMI Blog2019 (12) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... A. Ys. 2008 09 to 2012 13 was not brought to the notice of DRP because even in A. Y. 2012 13 for which tribunal order in assessee s own case in the proceedings u/s 201 (1) is against the assessee on one aspect i.e. Royalty aspect, DRP has decided the issue in favour of the assessee and held that no TDS was required to be deducted. When on one aspect, the matter is decided against the assessee i.e. Royalty aspect in the present case, it cannot be held that no TDS is required to be deducted even if on some other aspect i.e. on FTS aspect in the present case, it is held that TDS is not required to be deducted on that aspect. Moreover, the department has not accepted this proposition because the AO in the draft assessment order decided the issue against the assessee and because of that, objection was raised by the assessee before DRP and revenue cannot file appeal before the tribunal against DRP directions in these years. The consideration paid by the assessee as IUC/Bandwidth charges for alleged inter connect service falls within the ambit of process Royalty and element of income was involved and therefore, the assessee was bound to deduct the TDS on such payment. On th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carriers. The department has held that these payments are taxable in the hands of the recipients both as Royalty as well as FTS and therefore, the assessee was liable to deduct TDS and since, the assessee has not done so, demand is raised u/s 201 (1) and 201 (1A). 4. In A.Ys. 2008 09 to 2012 13, the stand of the department was same but as per an earlier tribunal order in ITA Nos. 449 to 453/Bang/2013 dated 30.12.2014 as per Para 42, the tribunal decided the issue on one aspect against the assessee and held that the consideration paid by the assessee as IUC charges for alleged inter connect service falls within the ambit of process Royalty and element of income was involved and therefore, the assessee was bound to deduct the TDS on such payment. But on the second aspect as to whether this payment is liable to tax or not in the hands of the recipients as FTS , as per Para 45, the tribunal remanded the matter back to CIT (A) for fresh adjudication because as per the earlier order which was before the tribunal, it was noted by the tribunal that the learned CIT (A) has not recorded any finding on this issue. Now in these five earlier years also, the assessee is in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 to section 9(1 )(vi) of the Act. 3.1.2 The learned CIT(A) has erred in holding that provision of interconnect services and bandwidth by the foreign carriers result in 'use of equipment belonging to the foreign carriers by the Appellant and hence, IUC and bandwidth payments qualify as royalty under clause (iva) of Explanation 2 to section 9( 1 )(vi) of the Act. 3.1.3 The learned CIT(A) has erred in upholding the order of the learned Tax Officer treating the IUC and bandwidth payments as royalty under the amended provisions of section 9(1)(vi) of the Act, despite the fact that the amendments are unconstitutional and hence, cannot be relied upon in determining the characterization of these payments. 3.2 Without prejudice to ground 3.1 above, on the facts and circumstances of the case and in law, the learned CIT(A)/ Tax Officer has erred in not appreciating that IUC and bandwidth payments are made in relation to the business carried on the by the Appellant outside India and hence, even if construed as royalty under the Act, such payments cannot be taxed in India by virtue of section 9( 1 )(vi)(b) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9(1)(vii) of the Act. 4.2 Without prejudice to ground 4.1 above, on the facts and circumstances of the case and in law, the learned CIT(A)/ Tax Officer has erred in not holding that IUC and bandwidth payments are made in relation to the business carried on the by the Appellant outside India and hence, even if construed as FTS under the Act, such payments cannot be taxed in India by virtue of section 9(1)(vii)(b) of the Act. 4.3 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that IUC and bandwidth payments qualify as FTS/ FIS as defined under the respective DTAAs. 4.4 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in not taking cognizance of the fact that provision of interconnect and bandwidth services does not involve 'human intervention' and hence, IUC and bandwidth payments do not qualify as FTS/ FIS for the purposes of the Act or the applicable DTAAs. 4.5 On the facts and circumstances of the case and in law, the learned CIT(A)/ Tax Officer has erred in not holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AA of the Act 6.1 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that section 206AA overrides the provisions of the DTAAs and hence, should be applied even in case of payments made to foreign carriers, which are covered by the applicable DTAAs. The Appellant craves leave to add, alter, amend or withdraw any of the above grounds at or before the hearing of the appeal. IT(IT)A No. 1161/Bang/2015:- (By Assessee -Assessment Year: 2014-15) The Appellant respectfully submits that: On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax Appeals - 12, Bengaluru ['learned CIT(A)'] has erred in passing an order under section 250 of the Income Tax Act, 1961 (`Act'), confirming the allegation of the Deputy Director of Income Tax, International Tax, Circle 1(1), Bengaluru (` learned Tax Officer'). Each of the ground is referred to separately, which may kindly be considered independent of each other. 1. Ground No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case and in law, the learned CIT(A)/ Tax Officer has erred in not appreciating that IUC and bandwidth payments are made in relation to the business carried on the by the Appellant outside India and hence, even if construed as royalty under the Act, such payments cannot be taxed in India by virtue of section 9( 1 )(vi)(b) of the Act. 3.3 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that IUC and bandwidth payments made by Appellant qualify as 'royalty' as defined under the applicable Double Taxation Avoidance Agreements (`DTAA') entered into between India and the country of residence of the foreign carriers. 3.3.1 The learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that services provided by the foreign carriers to the Appellant involve 'use of the process belonging to such foreign carriers by the Appellant. 3.3.2 Without prejudice to ground 3.3.1 above, the learned CIT(A) has erred in not taking cognizance of the fact that there needs to be 'use of a secret process' for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovision of interconnect and bandwidth services does not involve 'human intervention' and hence, IUC and bandwidth payments do not qualify as FTS/ FIS for the purposes of the Act or the applicable DTAAs. 4.5 On the facts and circumstances of the case and in law, the learned CIT(A)/ Tax Officer has erred in not holding that provision of interconnect services and bandwidth is a standard facility and hence, IUC and bandwidth payments cannot be construed as FTS/ FIS either under the Act or under the applicable DTAAs. 4.6 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that provision of interconnect services and bandwidth 'make available' technical knowledge, skill, know-how, process etc. to the Appellant and hence, IUC and bandwidth payments qualify as FTS/ FIS under the DTAAs, which contain a 'make available' clause in the definition of FTS/FIS. 4.7 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that provision of interco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(IT)A No. 2818/Bang/2017:- (By Assessee -Assessment Year: 2015-16) The Appellant respectfully submits that: On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax Appeals 12, Bengaluru ['learned CIT(A)1 has erred in passing an order under section 250 of the Income Tax Act, 1961 (`Ace), partly confirming the order of the Deputy Commissioner of Income Tax, International Tax, Circle 1(1), Bengaluru (`learned Tax Officer'). Each of the ground is referred to separately, which may kindly be considered independent of each other. 1. Ground No. 1- The impugned order passed by learned CIT(A) and also the order passed by the learned Tax Officer is bad in law and hence, void-ab-initio 1.1 On the facts and circumstances of the case and in law, and in view of the judgment of Hon'ble Supreme Court in the case of CIT Vs Spice Infotainment (CA 285 of 2014), the impugned order and also the order passed by the learned Tax Officer is 'bad in law' and 'void-ab-initio' since the same has been passed in the name of Vodafone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... width payments as royalty 5.1 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in merely relying upon the order of this Hon'ble Tribunal in the case of Appellant dated December 30, 2014 for earlier years without appreciating the fact that post the said decision, there have been many favourable decisions on this very issue and the position has changed. 5.2 Without prejudice to ground No. 5.1 above, on the facts and circumstances of the case and in law, the learned CIT(A) has erred in not holding that interconnect charges and bandwidth payments made by the Appellant to the foreign carriers do not qualify as 'royalty' as defined in Explanation 2 to section 9(1)(vi) of the Act. 5.2.1 The learned CIT(A) has erred in holding that provision of interconnect services and bandwidth by the foreign carriers results in 'use of or 'transfer of right to use' the process belonging to the foreign carriers by the Appellant and hence, interconnect charges and bandwidth payments qualify as a royalty under clause (i) and (iii) of Explanation 2 to section 9(1)(vi) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iers by the Appellant. 5.5 Without prejudice to ground 5.4 above, on the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that amendments made to section 9(1)(vi) of the Act, by way of insertion of' Explanation 5 and 6 vide Finance Act, 2012, should be applicable and be read into the DTAAs and hence, the interconnect and bandwidth payments made by the Appellant to the foreign carriers qualify as 'royalty' under the applicable DTAAs. 6. Ground No. 6 - Non characterization of interconnect and bandwidth payments as Fee for Technical Services (`FTS')/ Fee for Included Services (`FIS') 6.1 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that interconnect and bandwidth payments qualify as FTS as defined under section 9(1)(vii) of the Act. 6.2 Without prejudice to ground 6.1 above, on the facts and circumstances of the case and in law, the learned CIT(A)/ Tax Officer has erred in not holding that interconnect and band ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... governing taxability of FTS/ FIS, provisions of the Act apply, without appreciating the fact that in such cases, the relevant Article of the DTAA dealing with taxation of Business Profits is applicable. 6.9 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in not following the binding decision of the Jurisdictional High Court in the case of Vodafone South Limited (now known as VMSL) (241 Taxmann 497), wherein the Hon'ble High Court has held that roaming charges (similar to carrier charges) paid to domestic telecom operators cannot be termed as 'technical services'. 7. Ground No. 7 - Withholding tax liability under section 201 of the Act cannot be recovered from the Appellant 7.1 Without prejudice to Grounds 1 to 6 above, on the facts and circumstances of the case and in law, the learned Tax Officer has erred in raising tax demand under section 201 of the Act without taking cognizance of the fact that the payer cannot be held liable for payment of the tax demand in cases involving non-deduction of tax at source and only interest liability under section 201(1A) of the Act, if any, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. The order of the learned Commissioner of Income Tax (Appeals)- 12, Bengaluru is contrary to the law, facts and circumstances of the case. 2. The learned Commissioner of Income Tax (Appeals) -12. Bengaluru has erred in allowing appeal of the assessee on the issue of applicability of section 206 AA of IT Act on payments made to nonresident entities on the facts and circumstances of the case. 3. The learned Commissioner of Income Tax (Appeals) -12, Bengaluru erred in allowing relief quoting the case of Bosch Ltd Vs ITO which dealt with grossing up issue u/s 195 which are not related to section 206 AA of IT Act. 4. The learned Commissioner of Income Tax (Appeals) -12, Bengaluru erred in not appreciating the 'non-obstante' provisions contained in section 206 AA of IT Act, which would have overriding effect over all provisions of Act, including the treaty. 6. For these and such other grounds that may be urged at the time of hearing, it is prayed that the order of the CIT(A) may be annulled and that of the AO be restored. IT(IT)A No. 1312/Bang/2016:- (By Revenue -Assessment Year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. For that the Ld. CIT (Appeals) erred in law as well as on facts in holding that the 'other income' or the 'residuary income' clause of the DTAA is triggered only when the payments received by a non-resident does not get covered by any other article of the DTAA 4. For that the Ld. CIT (Appeals) erred in law as well as on facts in further holding that, once it is held that the nature of income is royalty both under the Act and the DTAA, there is no scope to invoke the residuary income article of the DTAA. 5. For that, the learned Commissioner of Income Tax erred in Jaw as well as on facts, in allowing the appeal of the assessee on the issue of applicability of section 206 AA of Income-tax Act, 1961, in respect of payments made to nonresident entities, in the facts and circumstances of the case. 6. For that, the Ld. CIT (Appeals) erred in law as well as on facts in holding that, there is no scope for deduction of tax at the rate of 20%, as provided under the provisions of Section 206AA, when the benefit of DTAA is available; despite the overriding effect of Section 206AA of the Income-tax Act, 1961 due t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as Fee for Technical Services (*FTS')/ Fee for Included Services (`F.'S') despite the favourable ruling of the Hon'ble Delhi Bench of the Tribunal in the case of Bharti Airtel Limited (178 TTJ 708 - dated March 17, 2016), wherein it has been specifically held that IUC paid to foreign carriers do not qualify as FTS/ FIS, which has not been challenged by the Revenue Department and thus, has been accepted. 2. Ground No. 2 - Payments not liable to tax deduction at source 2.1. On the facts and circumstances of the case and in law, the learned CIT(A) has erred in holding the Appellant to be an 'assessee-in-default' under section 201 of the Act for non-deduction of tax at source under section 195 of the Act on IUC and capacity transfer payments made to foreign carriers. 3. Ground No. 3 - Non characterization of interconnect and capacity transfer payments as Fee for Technical Services (`FTS')/ Fee for Included Services (`RS') 3.1 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that IUC and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he DTAAs do not have a clause governing taxability of FTS/ FIS, provisions of the Act apply, without appreciating the fact that in such cases, the relevant Article of the DTAA dealing with taxation of Business Profits is applicable. 3.8 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in not following the binding decision of the Jurisdictional High Court in the case of Vodafone South Limited (now known as Vodafone Mobile Services Limited) (241 Taxmann 497), wherein the Hon'ble High Court has held that roaming charges (similar to carrier charges) paid to domestic telecom operators cannot be termed as 'technical services' and decision of the Hon'ble Delhi Tribunal in the case of Bharti Airtel Limited, wherein it has been held that IUC payments made to foreign carriers do not qualify as FTS/ FIS. 4. Ground No. 4 - Withholding tax liability under section 201 of the Act cannot be recovered from the Appellant 4.1 Without prejudice to Grounds 1 to 3 above, on the facts and circumstances of the case and in law, the learned Tax Officer has erred in raising tax demand under section 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of the case and in law, the learned CIT(A) has erred in holding the Appellant to be an `assessee-in-default' under section 201 of the Act for non-deduction of tax at source under section 195 of the Act on IUC and capacity transfer payments made to foreign carriers. 3. Ground No. 3 - Non characterization of interconnect and capacity transfer payments as Fee for Technical Services (`FTS')/ Fee for Included Services (`FIS') 3.1 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that IUC and capacity transfer payments qualify as FTS as defined under section 9(1)(vii) of the Act. 3.2 Without prejudice to ground 3.1 above, on the facts and circumstances of the case and in law, the learned CIT(A)/ learned Tax Officer has erred in not holding that IUC and capacity transfer payments are made in relation to the business carried on the by the Appellant outside India and hence, even if construed as FTS under the Act, such payments cannot be taxed in India by virtue of section 9(1)(vii)(b) of the Act. 3.3 On the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oaming charges (similar to carrier charges) paid to domestic telecom operators cannot be termed as 'technical services' and decision of the Hon'ble Delhi Tribunal in the case of Bharti Airtel Limited, wherein it has been held that IUC payments made to foreign carriers do not qualify as FTS/ FIS. 4. Ground No. 4 - Withholding tax liability under section 201 of the Act cannot be recovered from the Appellant 4.1 Without prejudice to Grounds 1 to 3 above, on the facts and circumstances of the case and in law, the learned Tax Officer has erred in raising tax demand under section 201 of the Act without taking cognizance of the fact that the payer cannot be held liable for payment of the tax demand in cases involving non-deduction of tax at source and only interest liability under section 201(1A) of the Act, if any, can be levied in such cases. The Appellant craves leave to add, alter, amend or withdraw any of the above grounds at or before the hearing of the appeal. IT(IT)A No. 2471/Bang/2018:- (By Assessee-Assessment Year: 2010-11) The Appellant respectfully submits that: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the order of the learned Tax Officer holding that IUC and capacity transfer payments qualify as FTS as defined under section 9(1)(vii) of the Act. 3.2 Without prejudice to ground 3.1 above, on the facts and circumstances of the case and in law, the learned CIT(A)/ learned Tax Officer has erred in not holding that IUC and capacity transfer payments are made in relation to the business carried on the by the Appellant outside India and hence, even if construed as FTS under the Act, such payments cannot be taxed in India by virtue of section 9(1)(vii)(b) of the Act. 3.3 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that IUC and capacity transfer payments qualify as FTS/ FIS as defined under the respective Double Taxation Avoidance Agreements (`DTAAs'). 3.4 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in holding that provision of interconnect services and transfer of capacity involve 'human intervention' and hence, IUC and capacity transfer payments qualify as FTS/ FIS for the purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer has erred in raising tax demand under section 201 of the Act without taking cognizance of the fact that the payer cannot be held liable for payment of the tax demand in cases involving non-deduction of tax at source and only interest liability under section 201(1A) of the Act, if any, can be levied in such cases. The Appellant craves leave to add, alter, amend or withdraw any of the above grounds at or before the hearing of the appeal. IT(IT)A No. 2472/Bang/2018:- (By Assessee-Assessment Year: 2011-12) The Appellant respectfully submits that: On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax Appeals - 12, Bengaluru ['learned CIT(A)'] has erred in passing an order under section 254 read with section 250 of the Income Tax Act, 1961 (`Ace), confirming the order of the Deputy Director of Income Tax, International Tax, Circle 1(1), Bengaluru (` learned Tax Officer'). Each of the ground is referred to separately, which may kindly be considered independent of each other. 1. Ground No. 1-The impugned order pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. 3.3 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that IUC and capacity transfer payments qualify as FTS/ FIS as defined under the respective Double Taxation Avoidance Agreements (`DTAAs'). 3.4 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in holding that provision of interconnect services and transfer of capacity involve 'human intervention' and hence, IUC and capacity transfer payments qualify as FTS/ FIS for the purposes of the Act or the applicable DTAAs. 3.5 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the. order of the learned Tax Officer holding that provision of interconnect services and transfer of capacity 'make available' technical knowledge, skill, know-how, process etc. to the Appellant and hence, IUC and capacity transfer payments qualify as FTS/ FIS under the DTAAs, which contain a 'make available' clause in the definition of FTS/FIS. 3.6 On the facts and circumstances o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellant respectfully submits that: On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax Appeals - 12, Bengaluru ['learned CIT(A)'] has erred in passing an order under section 254 read with section 250 of the Income Tax Act, 1961 (Vice), confirming the order of the Deputy Director of Income Tax, International Tax, Circle 1(1), Bengaluru (`learned Tax Officer'). Each of the ground is referred to separately, which may kindly be considered independent of each other. 1. Ground No. 1- The impugned order passed by learned CIT(A) is bid in law and hence, void-ab-initio 1.1 On the facts and circumstances of the case and in law, and in view of the judgment of Hon'ble Supreme Court in the case of CIT Vs Spice Infotainment (CA 285 of 2014), the impugned order is tad in law' and ' void-ab-initio' since the same has been passed in the name of `Vodafone South Limited' which did not exist as on the date on which the impugned order was passed. 1.2 Without prejudice to ground No 1.1 above, the order passed by the learned CIT(A) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments qualify as FTS/ FIS for the purposes of the Act or the applicable DTAAs. 3.5 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that provision of interconnect services and transfer of capacity 'make available' technical knowledge, skill, know-how, process etc. to the Appellant and hence, IUC and capacity transfer payments qualify as FTS/ FIS under the DTAAs, which contain a 'make available' clause in the definition of FTS/FIS. 3.6 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the order of the learned Tax Officer holding that provision of interconnect services and transfer of capacity consists of development and transfer of a technical plan or design by the foreign carriers to the Appellant and hence, IUC and capacity transfer payments qualify as FTS/ FIS under the respective DTAAs, which include payments made for the aforesaid activity within the ambit of FTS/ FIS. 3.7 On the facts and circumstances of the case and in law, the learned CIT(A) has erred in relyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings u/s 201 (1) and 201 (1A), the orders of DRP in assessment proceedings are submitted by him along with written submissions dated 29.09.2009 filed om 01.10. 2019 and as per these orders, DRP has followed the tribunal order rendered in the case of Bharti Airtel Ltd. (Supra) and noted that no appeal is filed by the department before Hon ble High court against this tribunal order and hence, the same has attained finality and held that no disallowance can be made u/s 40a (i) of I T Act on account of non-deduction of TDS on IUC and bandwidth charges paid to non-resident telecom operators. He also submitted that DRP in A. Y. 2012 13 directed to verify this aspect as to whether revenue has filed appeal against the tribunal order in case of Bharti Airtel Ltd. (Supra) and if it is found that appeal is filed by the revenue in High Court than the issue stands decided against the assessee but if it is found that no such appeal is filed that no disallowance should be made on that account and as per the final assessment order passed by the AO in that year, no such disallowance was made. He also pointed out that in reply to an E mail of the assessee, the AO has confirmed by an E mail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nged by the assessee before Hon ble Karnataka High Court and the appeal is pending there. Hence, on this aspect, we prefer to follow the tribunal order in assessee s own case in preference to the tribunal order rendered in the case of Bharati Airtel Ltd. (Supra). Now, we deal with this contention of the learned AR of the assessee that in assessment proceedings in assessee s own case for A. Ys. 2012 13 to 2015 16, DRP has followed this tribunal order rendered in the case of Bharati Airtel Ltd. (Supra) and therefore, in the proceedings u/s 201 (1) also, this tribunal order should be followed. In our considered opinion, there is no merit in this argument because it is apparent that the earlier tribunal order in assessee s own case for A. Ys. 2008 09 to 2012 13 was not brought to the notice of DRP because even in A. Y. 2012 13 for which tribunal order in assessee s own case in the proceedings u/s 201 (1) is against the assessee on one aspect i.e. Royalty aspect, DRP has decided the issue in favour of the assessee and held that no TDS was required to be deducted. When on one aspect, the matter is decided against the assessee i.e. Royalty aspect in the present case, it cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay Petitions filed by the assessee do not survive and the same are dismissed but the revenue was directed in open court that till this tribunal order is pronounced, no coercive measures should be adopted. Otherwise also, during the pendency of the stay petitions, coercive measures cannot be taken by the revenue. 14. Now, we take up the appeals filed by the revenue. One appeal i.e. ITA No. 1367/Bang/2015 is a duplicate appeal and dismissed accordingly. In two appeals of the revenue in the proceedings u/s 154, the issue involved is about the applicability of section 206AA for higher TDS on payments made to nonresidents where PAN of deductee is not provided. This issue was decided by CIT (A) in favour of the assessee by following a tribunal order rendered in the case of Infosys BPO Ltd., 154 ITD 816 and the order of the special bench of the tribunal rendered in the case of Nagarjuna Fertilisers and Chemical Ltd., 49 CCH 0053 HydTrib. No contrary decision was pointed out by the learned DR of the revenue and therefore, we decline to interfere in the order of CIT (A). 15. In the remaining three appeals of the revenue also, the issue involved is about the ..... 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