9911796707
TMI Blog2023 (2) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... ,752/-. 02. The brief facts of the case shows that the assessee is a private limited company engaged in the business of trading in software and software products. It filed its return of income on 31st October 2005, declaring total income of Rs.3,64,579/-. The case was selected for scrutiny and the assessment order under section 143 (3) of the Act was passed on 20th December, 2007, assessing the total income of the assessee at Rs.19,16,750/-. 03. The learned assessing officer made disallowance on account of non-deduction of tax at source on i. payment of car hire charges which is reimbursed to the directors of the company amounting to Rs.60,000/-, ii. software consultancy charges paid to Orbit Software amounting to Rs.7,71,752/- and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of payment to M/s Springfield Organics is related to the purchase of software from that company. He submitted that as assessee is in the business of trading in software the above amount is traded goods for the assessee and therefore, no tax was required to be deducted. The software was also purchased and supplied to a USA based client of the appellant. The software was specifically made by the supplier on the direction of the appellant. The decision of Commissioner of sales tax Maharashtra in the case of Mastek Ltd. (DDQ 11-2001/ADM-5/83/D-7 dated 3rd August, 2004, clearly covers the issue that where software developed specifically for a customer was held to be goods and since tax was levied thereon. If the sale tax was levied, it was sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing officer was of the view that tax is required to be deducted. Before us, the assessee has submitted that it is a reimbursement of expenditure to the director of the company who is undergoing frequent travel. These payments have been made by the director of the company to various taxi owners. The instances of four persons are mentioned wherein the payment made by the director to those persons are Rs.12,000/- to Rs.17,000/-. As the above payment is in the nature of reimbursement and paid to Mr. Pankaj Dalal, we find that no tax is required to be deducted at source on amount reimbursement to Mr. Pankaj Dalal. The addition therefore requires to be deleted to the extent of Rs.60,000/-. ii. With respect to the software consultancy charge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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