TMI Blog2022 (9) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... ging the scope of the definition of Royalty . In the absence of the same, therefore the grounds raised by the assessee are hereby rejected and the appeal filed by the assessee is dismissed. - ITA No. 304/Ahd/2019 - - - Dated:- 31-8-2022 - Ms. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Appellant : None For the Respondent : Shri V.K. Singh, Sr.D.R. ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- The present appeal has been filed by the Assessee against the order dated 21.12.2018 passed by the Commissioner of Income Tax (Appeals)-13, Ahmedabad, as against the order passed under section 201 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) relating to the Assessment Year (A.Y) 2016-17. 2. The brief facts of the case is that the assessee is a company is engaged in the business of collecting market research data and conducting surveys/interviews in the different countries based on project specifications provided by its clients. In consideration, it receives payments on Cost Per Interview (CPI) basis. For the purpose of preparation of questionnaire and survey design, the assessee log into the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rizon Communications Singapore Pte. Ltd. (supra) judgment of Madras High Court after considering post amendment by Finance Act 2012 and introduction of Explanation 5 in section 9(1)(vi) of the Act. Thus, the Ld. CIT(A) dismissed the appeal as follows: In the instant case, it is observed that NEBU is market research software based in Netherlands and provides a component based software for data collection and also provides technical support, hosting and training and allows its clients to unlock the full potential of data. When a company pays to host their files on NEBU web server, they were buying hosting. NEBU is hosting website of another company on its servers. It is nothing but one type of included services with regard to web hosting and its future use. Since the services rendered by NEBU Netherland to the Remitter-company are in nature of Royalty and fee for included services, the consideration of Rs.7,24,268/- paid for rendering of such services are in the nature of royalty and fee for technical services as defined u/s 9(l)(vi) and (vii) of the Income-tax Act, 1961. In view of the above detailed discussion, I find that the payments made to NEBU are in the nature of roy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Vs. Samsung Electronics Co Ltd as the facts of that case are clearly distinguishable from the facts of the present case of the appellant. 4.1. Today is the 11th time of hearing of this appeal before us. In the previous hearing on 13th June, 2022, this case was listed for hearing, Shri Dipen Sankhesara Advocate appeared and undertook to file Vakalatnama as well as written submission on behalf of the assessee. Therefore the case is adjourned to 16.06.2022. However on 16.06.2022, the Bench did not function and the case is adjourned to 13.07.2022. Today none appeared on behalf of the assessee. Except on 16.06.2022 none appeared on behalf of the assessee in all the previous hearings. Therefore with the material available on record and with the assistance of the Ld. D.R., we are required to proceed with the appeal. 5. The Ld. D.R. appearing for the Revenue submitted that the services rendered by the assessee is in the nature of Royalty and liable to deduct tax at source in respect of payment made to NEBU of Netherland, u/s. 195 of the Act. Therefore the assessing officer is correct in charging short deduction of taxes u/s. 201(1) and charging interest u/s. 201(1A) of the Act fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncomes shall be deemed to accrue or arise in India:- (vi) income by way of royalty payable by- (a) the Government; or (b) a person who is a resident, except -where the royalty is payable in respect of any right, property or information used or services utilised for the purposes of a business or profession carried on by such person outside India or for the purposes of making or earning any income from any source outside India; or (c) a person who is a non-resident, where the royalty is payable in respect of any right, property or information used or services utilised for the purposes of a business or profession carried on by such person in India or for the purposes of making or earning any income from any source in India: Explanation 5.-For the removal of doubts, it is hereby clarified that the royalty includes and has always included consideration in respect of any right, property or information, whether or not- (a) the possession or control of such right, property or information is with the payer; (b) such right, property or information is used directly by the payer; (c) the location of such right, property or informati ..... 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