TMI Blog2020 (4) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, as held by the M/S. VINZAS SOLUTIONS INDIA PRIVATE LIMITED [ 2017 (1) TMI 1102 - MADRAS HIGH COURT] purchase of copyrighted articles, does not fall within this scope of section 9(1)(vi) of the Act. The assessee has also consumed them to develop the application and sold them. In the absence of any findings from the Revenue that the Acqueon Technologies Ltd Inc. USA was paid over and above the purchase price, its treatment that the impugned transaction falls u/s. 9(1)(vi) is not valid and hence, the corresponding grounds of the assessee are allowed. Disallowance of payments of contribution towards PF - sums received by the assessee from its employees towards contribution to PF were made beyond the due date as per PF Act - HELD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 84,30,994/- as the sums received by the assessee from its employees towards contribution to PF were made beyond the due date as per PF Act. Aggrieved, the assessee filed an appeal before the CIT(A). The Ld. CIT(A) sustained the disallowance made u/s. 9(i)(vi). With regard to the disallowance of payment of employees contribution to PF, the Ld. CIT(A) directed the AO to allow the deduction u/s. 36(1)(va), where any payments has been made within the grace period allowed under the PF Act. Aggrieved against that order, the assessee filed this appeal. 3. The Ld. AR submitted that both the Ld. AO as well as the Ld. CIT(A) failed to appreciate that the purchase of software license is in the nature of goods under the Sales Tax/VAT Act. Thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hare of the product or proceeds therefrom reserved to the owner for permitting the another to use the property; the share of the produce reserved to the owner for permitting another to exploit and use the property; a share of the profit, reserved by the owner for permitting another to use the property; the amount reserved or the rental to be paid the original owner of the whole estate. Thereafter, he invited our attention to the head note of the decision in the Taxman which reads as under: Section 9 of the Income Tax Act, 1961, read with article 12 of OECD Model Tax Convention Income Deemed to accrue or arise in India (Royalty) assessee, a dealer in computer software, had purchased softwares from various companies - Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t following the decision of CIT vs Alom Extrusions Ltd. reported in 319 ITR 306 (SC) and Delhi High Court decision in the case of CIT vs Amil Ltd. reported in 321 ITR 508 upheld the tribunal decision that payment of PF and ESI made beyond the grace period/due date allowed under PF ESI Act but before the due date of filing the income tax return cannot be disallowed u/s. 43 of the Act. Further, the Ld. AR also relied on this ITAT decision in the assessee s case for assessment year 2005-06. Per contra, on the issue of disallowance on purchase of software license, the Ld. DR supported the order of the Ld. CIT(A). With regard to the disallowance made towards belated payments of employees contribution to PF, the Ld. DR invited our attention to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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