TMI Blog2017 (11) TMI 1968X X X X Extracts X X X X X X X X Extracts X X X X ..... hip is again to enable the assessee to secure the membership of an entity, representing a framework of organizations, i.e., to secure its membership and, thus, the various services and benefits for the conduct of its business in India under its aegis. MIS Emerge fee is again for reporting systems (for micro finance organization and finding solutions), perhaps to be followed as a member. These are clearly in the nature of managerial and technical services falling within the purview of FTS covered u/s. 9(1)(vii). The decision in G.E India Technology Pvt. Ltd. [ 2010 (9) TMI 7 - SUPREME COURT] is, in ratio, clearly applicable in the facts of the case, albeit in favour of tax deduction tax at source and, consequently, applicability of s. 40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MIS Emerge fee 8,58,242 Total 43,08,727 The Assessing Officer (AO) disallowed the same in view of the admitted failure on the part of the assessee to deduct tax at source under Chapter XVII-B of the Act, pleading that of the total sum of ₹ 27.01 lacs, amounts aggregating to ₹ 15,39,223/-, which were being also proposed by the Assessing Officer (AO) for disallowance as prior period expenses, be therefore excluded, as not doing so would amount to a double disallowance. The disallowance was accordingly restricted by the AO to ₹ 11,61,966/- (i.e., ₹ 27.01 lacs ₹ 15.39 lacs). In appeal, it was explained that the collateral security ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a later year upon deduction tax at source. The same would accordingly apply. As he had, in appeal, accepted the assessee s plea with regard to prior period expenses, the disallowance u/s. 40(a)(i); the telescoping benefit being no longer available, stood restored to ₹ 27.01 lacs. Aggrieved, the assessee is in second appeal. 3. We have heard the parties, and perused the material on record. Our first observation is the matter is that the aggregate amount across the three payments, which have been regarded as liable to deduction of tax at source u/s. 195 and, consequently, qua which disallowance u/s. 40(a)(i) is made out, is at .43.09 lacs (refer para 2 of this order), while disallowance has been restricted to ₹ 27.01 lacs, i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... embership and, thus, the various services and benefits for the conduct of its business in India under its aegis. MIS Emerge fee is again for reporting systems (for micro finance organization and finding solutions), perhaps to be followed as a member. These are clearly in the nature of managerial and technical services falling within the purview of FTS covered u/s. 9(1)(vii). The decision in G.E India Technology Pvt. Ltd. (supra) is, in ratio, clearly applicable in the facts of the case, albeit in favour of tax deduction tax at source and, consequently, applicability of s. 40(a)(i), which stands thus rightly invoked. The same, it can be appreciated, does not provide for absolute disallowance, and the assessee could, by remitting the withhold ..... X X X X Extracts X X X X X X X X Extracts X X X X
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