9911796707
TMI Blog2011 (11) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the marketing contribution has been received in terms of agreement dated 8.11.2005 which is obviously after 1.6.2005, the tax rate of 10% is applicable under the provisions of sub clause (AA) of clause (b) of Section 115A(1) of the domestic law. Value Added Services (VAS) treated as Fees for Technical Services (FTS) - assessee was supplying rough diamonds to Worldwide Sightholders - AO has applied rate of 15% under provisions of Article-13 of India UK Tax Treaty - Held that:- The payment for VAS received by the assessee has to be considered partly as royalty under para 3(a) of Article-13 being the payment for various types of information of commercial nature acquired based on experience provided to Sightholders and partly as FTS under para 4(a) being the payment attributable to the services rendered by the KAM or through workshops, etc. which were ancillary and subsidiary to application or enjoyment of the information, or as FTS being payment for marketing consultancy services which were ancillary and subsidiary to the application or enjoyment of Nakshatra Brand or Forevermark. The AO will tax the payments as royalty and FTS accordingly. As the tax rate is the same for tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OMBAY-F]. - IT APPEAL NO. 8831(Mum.) OF 2010 - - - Dated:- 18-11-2011 - RAJENDRA SINGH, V.D. RAO, JJ. M.P. Lohia for the Appellant. Ms. Malathi Sridharan for the Respondent. ORDER Rajendra Singh, Accountant Member This appeal by the assessee is directed against the order dated 12.10.10 of the AO under section 143(3) r.w.s. 144C(13) of the Income tax Act passed as per direction of Dispute Resolution Panel-1 (DRP). The assessee in this appeal has raised disputes on 13 different grounds. 2. The assessee company who is incorporated as tax resident of UK was involved in selling rough diamonds to worldwide Sightholders. The assessee was also incurring expenditure on promotional activities for which Sightholders had been charged as marketing contribution. Besides, the assessee was also providing value added services to the Sightholders. The AO taxed the receipts from marketing contributions and value added services as royalty and fees for technical services respectively which has been disputed in this appeal. The addition has also been made by the AO on account of factual discrepancies in the income declared by the assessee. There are also disputes regarding r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd., a Sightholder, on the basis of information received from the said party under section 133(6). The assessee had declared the total marketing contribution of Rs. 12,51,76,997/-. The AO, therefore, added the sum of Rs. 1,29,51,000/- on account of discrepancy with Dimexon Diamond Ltd. and assessed the total marketing contribution of Rs. 13,81,27,997/- as royalty. Aggrieved by the said decision, assessee is in appeal before the Tribunal. 5.1 Before us, the ld. AR for the assessee submitted that the payment of USD 3,00,000 related to Assessment Year 2006-07 and not to Assessment Year 2007-08. He referred to invoices issued by Dimexon Diamond Ltd. placed at page-184 of the paper book which was dated 23.2.2006 which related to Assessment Year 2006-07. It was also submitted that USD 3,00,000 lacs was payment made by the assessee and not a receipt and, therefore, could not be taxed in its name. It was pointed out that in the invoice dated 23.2.2006, the name of the beneficiaries was clearly mentioned as Dimexon Diamond Ltd. and, therefore, assessee was payer and the said party was payee. It was argued that on this ground also, amount could not be assessed as income. The ld. DR on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a UK Tax Treaty. The assessee objected to the rate of 15% proposed by the AO before DRP who observed that it was not clear whether the assessee had opted for domestic law or the treaty. It was also observed that in the objections raised, the assessee had mentioned that AO erred in not treating the marketing contribution as royalty under Article-13 of India UK Tax Treaty, and, therefore, if the royalty was being considered by the assessee under DTAA, then the rate of DTAA would apply as assessee could not be allowed to apply the law in a piecemeal manner. DRP, therefore, upheld the rate of 15% being proposed by the AO as per DTAA. Aggrieved by the said decision, the assessee is in appeal before the Tribunal. 6.1 Before us, the ld. AR for the assessee submitted that taxability of a sum had to be considered under domestic law as well as under DTAA because in case a particular sum was not taxable under domestic law, it cannot be taxed even if the same was taxable under DTAA. Similarly, if the sum was not taxable under DTAA, the same cannot be taxed even if the same was taxable under the domestic law. Further, the AO had applied both the provisions and had held that the marketing co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd was also providing various Value Added Services (VAS). The copy of the service guide for VAS has been placed at pages 75 to 107 of the paper book. As per the agreement, the assessee was providing core services and growth services. The core services had two components viz. supply planning tools and business sustainability services. Supply planning tool is claimed to be on payment basis whereas the business sustainability services was paid for by the assessee. The assessee was also providing growth services on request which were not chargeable. The supply planning tools details of which have been placed at pages 81-82 of the paper book was regarding information given by the assessee to sightholders about the nature and quantity of goods it intended to sell and access to DTC information through Extranet services, etc. The supply plant tool services can be summed up as under:- ( i ) Provision of extended contract period of two and a half years to maintain continued and steady supply of rough diamonds. ( ii ) Communication to the sight holders, the aggregate level and nature of goods, the assessee intends to make available during the selling period. ( iii ) Communication ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The AO observed that the assessee had developed sightholders' Extranet services which were technical in nature. The assessee had advanced technology standardization method and effective net communication, through Extranet services. The assessee had granted access to all these technological systems for which compensation was received. The assessee was thus providing technical services to the sightholders for their commercial purposes and the amount charged as VAS was nothing but fees for technical services within the meaning of Explanation-2 to Section-9(1)(vii) and also under Article-13 of India UK Tax Treaty. The assessee disputed the proposed addition of AO and raised objections before DRP. The DRP after necessary examination and after hearing the assessee observed that even though services were rendered from outside, the same were taxable in India in view of the Explanation introduced in section 9 by the finance Act 2010, w.e.f. 1.6.1976. DRP also observed that the VAS were ancillary and subsidiary to the application or enjoyment of right of the assessee in the brand used by the sightholders the payment for which was royalty in terms of para 3(a) of indo UK Tax Treaty and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of para 4(a) of article 13 of the Treaty were applicable when technical or consultancy services were ancillary or subsidiary to the application or enjoyment of the right or property etc., for which royalty had been paid under para 3(a) of Article-13. In this case, royalty had been considered as payment by the assessee for use of Nakshatra Brand whereas the services had been rendered by the assessee in connection with sale of rough diamonds. Thus, the service even if technical in nature could not be related to the payment of royalty and, therefore, the same could not be taxed under para 4(a). 7.6 The ld. DR on the other hand argued that the VAS were ancillary to the services for payment of royalty under para 3(a) of Article-13. She referred to agreement dated 8.11.2005 regarding marketing contribution to point out that the marketing campaign was to promote licenced products which were the rough diamonds. It was pointed out that, VAS which related to sale of rough diamonds were ancillary to the marketing contribution which was to promote sale of rough diamonds and therefore provisions of para 4(a) were applicable and payment had to be taxed as fees for technical servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d either under para 4(a) or para 4(c) of the Article-13 of Indo-UK Tax Treaty. 7.8 The Bench at the time of processing the case for order, realized that, for understanding the true nature of payment for VAS, it was necessary to consider the applicability of para 3(a) of Article 13, which provided for taxation of any payment for information concerning industrial, commercial and scientific experience as royalty as all the relevant facts for application of para 3(a) were already on record. The case was accordingly heard again. 7.8.1 The ld. A.R for the assessee argued that para 3(a) had not been applied either by AO or by the DRP and, therefore, could not be considered at this stage. However, it was brought to the notice of ld. A.R that subject matter of dispute was taxability of payment for value added services and, in case, such payment was found to be taxable under some other para of the same Article, it will be within the jurisdiction of the Tribunal to consider the said para as same will be within the subject matter of appeal. The ld. DR pointed out that there were several judgments including the judgment of Hon'ble Supreme Court in which the decision of the Tribunal to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upport of the proposition that interpretation of identical terms given in the international model conventions has to be followed by the Indian tax authorities. 7.10.1 Ld. A.R referred to the judgment of Hon'ble Delhi High Court in the case of Asia Satellite Telecommunications Co. Ltd. v. DIT [2011] 332 ITR 340/197 Taxman 263 to argue that interpretation of the term royalty given in OECD model convention has to be followed as definition of royalty in the domestic as well as in the Indo-UK Treaty was identical to that in the OECD model. It was pointed out that the Hon'ble High Court in the said case had referred to several judgments of Hon'ble Supreme Court in which it was emphasized that well settled internationally accepted meaning placed on identical and similar terms employed in various DTAA should be followed by the Courts in India when it comes to construing similar terms occurring in the Indian Act. The Hon'ble High Court accordingly held that the Tribunal was not correct in discarding commentary of OECD and of Klaus - Vogel on the ground that it was not safe to rely on such commentaries. Reference was also made to the decision of Mumbai Bench of the Tribunal in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that payment for collecting data, analyzing it and making its data base for providing information on suitable candidates to the recruitment agencies was not payment for information concerning industrial, commercial or scientific experience and therefore not royalty as held by AAR in case of Real Resourcing Ltd., In re [2010] 322 ITR 558/190 Taxman 151 (New Delhi). 7.11 The ld. DR on the other hand argued that the provisions of para (3a) of Article 13 as per which any payment for information concerning industrial, commercial or scientific experience is taxable as royalty were applicable in the case of the assessee. It was submitted that there was no dispute that definition of royalty in the OECD Model as well as in the Indo UK Treaty was identical and therefore the OECD commentary giving interpretation of the term royalty could not be rejected. However, it was pointed out that the perception of OECD itself was changing as to the meaning of the word "know how". Ld. DR referred to the OECD commentary of 2005 which had since been revised in 2008 in which there is change in the definition of "know how". In the 2005 commentary, "know how" was defined as un-divulged technical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m know how was similar to the term meaning of the term given in OECD commentary as per which any un-divulged information of industrial, commercial or scientific nature arising from previous experience has to be considered as know how. 7.11.2 In the present case it was pointed out that the assessee was supplying rough diamonds to Worldwide Sightholders. The assessee was providing core and growth services to the Sightholders. The services provided as per Service Guide were nothing but commercial information given by the assessee which were based on its past experience in marketing and supply of diamonds. She referred to page-80 of Service Guide placed on record in which it was clearly mentioned that all VAS were carefully chosen and evaluated and were based on DTC's unparallel experience in selling and marketing of gem diamonds. Further, page 77 of the Service Guide clearly mentioned that the information contained in the Service Guide was confidential information and was provided to Sightholders on the basis that it shall be kept confidential. The information contained in the Service Guide which was confidential and which was provided to Sightholders by the assessee was commercia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... velopments which enabled the clients to devise local marketing strategies. Further, the information provided by the assessee was not readily useable by the customers who were required to further modify them and apply according to the requirement of business. The payment for such information which was based on experience had therefore to be considered as royalty. The ld. DR further submitted that the information made available to the clients, was based on the experience and knowledge of the assessee acquired over a period of time which the customers could themselves use without recourse to the assessee and therefore, these could also be considered as fees for technical services under para 4(c) of Article-13 as the assessee could be considered as providing consultancy services which made available knowledge and experience to the Sightholders. 7.12 In reply, the ld. AR for the assessee submitted that though there was some change in language used in para-11 of 2008 OECD commentary compared to the 2005 commentary but para 11.1 remained the same in both the commentaries. As per para 11.1, the recipient was required to use know how on his own and the granter was not required to play a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO, however, in the final order taxed the payment as FTS under para 4(c) of the Treaty. The assessee has raised the dispute that AO was not correct in taxing the payment as FTS under para 4(c). Both the parties were heard at length and thereafter the case was again fixed for hearing as the Bench was of the view that the case required further arguments regarding applicability of provisions of other paras of Article-13. It was pointed out to the ld. AR that if the payment was found taxable under some other para, the same could also be considered by the Tribunal as it will be within the subject matter of the appeal. Initially, the ld. AR for the assessee objected to consider the provisions of other paras of the Article which were not applied by the lower authorities. However the ld. AR finally agreed that the provisions of other paras could also be considered. 7.14 It would be pertinent to point out here that power of Tribunal while dealing with an appeal are quite wide. It could also consider any other argument connected with the ground even if not considered by the lower authorities as held by Hon'ble Supreme Court in case of Hukumchand Mills Ltd. v. CIT [1967] 63 ITR 232 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(vi) which among other things includes any payment for the imparting of any information concerning technical, industrial, commercial or scientific knowledge, experience or skill. 7.16 Further, for taxability of the sum as royalty or FTS under the provisions of Income tax, it is not necessary that the non resident should have a place of business in India or to have rendered any services for India. It has been made clear in the Explanation to section 9(2) inserted by the Finance Act, 2010 with retrospective effect from 1.6.1976 as per which the income is chargeable in India whether or not, the non resident is rendering services in India, or has a place of business or business connection in India. Under the provisions of treaty also, royalty and FTS are chargeable to tax in the hands of non resident whether or not he has any Permanent Establishment (PE) in India. Therefore, the nature of income is of great significance while considering taxability because in case the payment is considered as business income in the hands of the non-resident, the payment under the provisions of treaty can be taxed in India only if the non resident has PE in India. There is no dispute that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er cent of the gross amount of such royalties and fees for technical services. 3. For the purposes of this Article, the term "royalties" means: ( a ) payments of any kind received as a consideration for the use of, or the right to use, any copyright of a literary, artistic or scientific work, including cinematography films or work on films, tape or other means of reproduction for use in connection with radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience; and ( b ) payments of any kind received as consideration for the use of, or the right to use, any industrial, comrercia1 or scientific equipment, other than income derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic. 4. For the purposes of paragraph 2 of this Article, and subject to paragraph 5, of this Article, the term "fees for technical services" means payments of any kind of any person in consideration for the rendering of any technical or consultancy services (including the provision of services of a technical or other per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Article-13 of Indo UK Treaty has to be assigned the same meaning as fees for included services as per para 4(b) of Article-12 of Indo US Treaty. In that case, role of non-resident technical advisor was to review or to give opinion on the project. It was held that expressing opinion or reviewing details of the project without any role in design and development of the project did not amount to making technology available in the sense that recipient of services was entitled to apply technology and therefore it was held that payment was not taxable as FTS. Similarly, in case of Mckinsey Co. Inc. Phillippines ( supra ), it was held that non technical consultancy service was not to be covered under the provisions of para 4(b) of Article-12 of Indo US Treaty. In that case, the Tribunal noted that the payment made to the NRI Company was for geographical data and information which was in the nature of commercial and industrial information. The assessee was not making available technical knowledge, experience etc. It was, therefore, held that the provisions of para 4(b) of Article-12 of Indo US Treaty were not applicable and therefore the payment could not be considered as fees for inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of royalty as marketing contribution and were thus covered as fees for technical services under para 4(a) of the Article. The ld. AR has however rightly pointed that page 5 of the Nakshatra Agreement clearly provided that licenced products were jewellery pieces incorporating diamonds designed and manufactured by Sightholders. The marketing contribution which has been taxed as royalty was thus to promote "Nakshatra" brand of jewellery and not for sale of rough diamonds. The assessee had also received royalty for use of "Forevermark" which related to sale of polished diamonds. Thus royalty received by the assessee as marketing contribution was not in relation to sale of rough diamonds. 7.22 It will be pertinent to point out here that VASs were not in relation to sale of rough diamonds only. Though the assessee was selling rough diamonds, it had taken various measures for growth of finished diamond products and diamond industry as a whole. It had acquired the Nakshatra brand of diamond jewellery and Forevermark for polished diamonds which it had allowed to be used by the Sightholders on payment of royalty. This was obviously to generate demand for rough diamonds by promoting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the treaty is not without any basis. 7.23 However, the DRP overlooked the fact that the definition of royalty under para 3(a) also included any payment for information concerning industrial, commercial or scientific experience. A careful perusal of VAS Service Guide shows that the assessee was providing various types of commercial information relating to selling of rough diamonds and finished diamond products. The VAS service guide also provided that information provided by the assessee which was confidential in nature was based on its experience. The summary of various services have been given in para-7 to 7.2 earlier. The services have been placed in two categories i.e. core services and growth services. Under the core services, the assessee was providing supply planning tool services and business sustainability services. Supply planning tool services basically consisted of advance information given by the assessee to Sightholders regarding nature, quality and other parameters of diamonds it intended to make available over selling period of two and a half years. Normally, a trader does not charge for giving information about goods it intends to sell. However, in this case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... information of commercial nature developed by the assessee based on its own extensive experience in marketing of diamonds. The information was protected by intellectual property rights belonging to the assessee which had been provided to the Sightholders with the condition that the same would be kept confidential. It is clear from the relevant para of VAS service guide at page 77, which is reproduced below as ready reference:- "The content of the Value Added Services programme provided by The Diamond Trading Company Limited (the "DTC") is protected by copyright and other intellectual property rights these intellectual property rights are owned by the DTC. The information contained within this Service Guide 2005 ("Confidential Information') is proprietary and confidential to the DTC; it is provided to Sightholders on the basis that it shall be kept confidential and used only in relation to their business while participating in the DTC Value Added Services programme. Sightholders shall not disclose, publish or otherwise reveal any of the Confidential Information to any third party except with the prior written consent of the DTC." 7.25 The ld. A.R for the assessee agreed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he payment has been made, he has access to all the services. In fact business sustainability services are also available on Extranet to which the Sightholders had access as part of supply planning tool services. Thus even if charge was only for supply planning tool services, the business sustainability services were covered by the charge. Merely because the agreement mentions that the payment is only for supply planning tool services, it cannot be accepted that the other services were free of charge. It is a settled legal position that it is not the form but the substance of transaction which is relevant and the agreement has to be considered as a whole in understanding the true nature of transactions. It is true that an authority cannot re-write the agreement but the authorities are entitled to look into the entire surrounding circumstances to come to a conclusion about any factual situation. This view is supported by the judgment of the Hon'ble Supreme Court in the case of CIT v. Durga Prasad More [1971] 82 ITR 540. No doubt, it is true that agreement is with the Sightholders who are not related but the provisions in the agreement to show that payment was only for supply plan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. AR tried to argue that marketing contribution was reimbursement of expenditure and therefore not taxable. However, ultimately he agreed for its taxability as royalty and the ground raised by the assessee on this point was not pressed. In case of VAS also, the assessee has tried to hide the true nature of payment by showing it as payment for supply tool services only though in substance the payment is for business sustainability, growth and other services also. Therefore, for the detailed reasons given earlier, we hold that VAS payment was not only for supply tool services but for other services also. 7.28 We now come to the interpretation of the phrase royalty as payment for information concerning industrial, commercial or scientific experience. Such phrase has been interpreted in the OECD Model DTAA Commentaries. As discussed earlier, it is a settled legal position that internationally acceptable meaning placed on identical and similar terms employed in various DTAA Commentaries have to be followed. The ld. Authorised Representative has placed reliance on the OECD Model and it has been explained in OECD Model Commentary, that royalty payment received as consideration f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make use of information contained in the Service Guide. The KAM is the point of contact with the Sightholders, which provides access to Value Added Services and DTC Global Marketing, which is also available on Extranet to which the Sightholders had access. The role of KAM was thus to provide various information and clarifications on personal contact and to provide assistance in service selection to the Sightholders' specific business requirement on request basis. He had no role in application or utilization of the information which the Sightholders had to perform on their own. The service provided by the KAM was of the nature of consultancy which was ancillary and subsidiary to the application or enjoyment of the information or the brands for which the payment was received by the assessee. The assistance provided through workshops and personal meetings as part of growth services was also consultancy service which was ancillary and subsidiary to marketing information or brands provided by the assessee. The payment for the various types of information as discussed earlier was clearly covered by the provisions of para 3(a) as royalty. Therefore, the service provided by KAM and throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holders was not the information gathered by the assessee during the course of performing any services but the information of commercial nature arising from past experience. As per OECD Commentary (2008), payment for any information which is undivulged and confidential of industrial, commercial or scientific nature arising from previous experience has to be considered as royalty. The Sight Holders to whom the information was being provided had to independently evaluate and use the information for their own specific business requirements. The only service which was being provided by the assessee was through the KAM and the assistance provided through workshops, personal meetings as part of growth services. Such services were ancillary and subsidiary to the application or enjoyment of the information or brands provided by the assessee and have to be considered as fees for technical services under para 4(a) of Article-13 as held earlier. We may point out here that in case, as argued by the ld. AR, the various marketing information provided by the assessee is considered as current information obtained during the course of actual rendering of services, such services will obviously be mar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of VAS payments which could be allowed only if corresponding income was shown as per provisions of section 199. He therefore added the sum of Rs. 3,65,89,942/- on account of VAS income which was assessed at Rs. 1,48,88,34,012/-. The assessee has disputed the decision of the AO before the Tribunal. 8.1 Before us, the ld. Authorised Representative for the assessee submitted that in terms of agreement with sightholders, the assessee was raising invoice twice in a year i.e. in the months of June and December of the relevant year. The assessee was showing income as accrued only when the invoice was raised. Thus the income for the period January to March 2006 was shown in the income for the Financial Year 2006-07 whereas the party may have shown the income from January to march 2006 in Financial Year 2005-06. Similar was the position in relation to January to March 2007 quarter. The income for the period July 2006 to December 2006 was shown in the income of Financial Year 2006-07 as invoice was raised in December 2006. The same income had been shown by the sightholders also because the said period fell within the same Financial Year in both the cases. The discrepancy was onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired verification. 8.3 We have perused the records and considered the matter carefully. The dispute is regarding addition of Rs. 3,65,89,942/- to the VAS receipts on account of discrepancies with the four parties as mentioned earlier which had shown more payments than the receipts declared by the assessee. The discrepancy had been explained by the assessee due to difference in method of accounting followed by the two parties. It has been claimed that the assessee was raising invoices only twice a year i.e. in the months of June and December of the relevant year i.e. on six monthly basis and, therefore, the receipts of last quarter of the previous year were accounted in the current year whereas the concerned party had shown the said income in the earlier year which was the reason for discrepancy. There was no discrepancy in respect of invoices raised for the period July to December because the period fell in the same financial year for both the parties. The assessee had filed a reconciliation statement which has been placed at page-107 of the paper book. It has also been claimed that the assessee had been following the same method regularly in the earlier year which had been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent has been treated by the assessee as royalty and offered to tax. The dispute in this ground is only in relation to rate of tax. The AO applied the rate of 15% under the provisions of Article-13 of India UK Tax Treaty. The claim of the assessee is that concessional rate of 10% has to be applied under domestic law as per provisions of sub clause (AA) of Clause (b) of section 115A(1) as agreement had been entered into after 1.6.2005. The issue is identical to the issue raised in Ground No. 4 regarding tax rate in case of market contribution assessed by AO as royalty. For the reasons given vide para 6.2 of this order, we hold that concessional rate of 10% has to be applied in case of the assessee. Accordingly ground No. 9 is allowed in favour of the assessee. 12. Ground No. 10 is regarding not granting credit for tax withheld on the addition of VAS receipts in accordance with provisions of section 199. The AO had made certain additions as mentioned in the ground No. 6 but had not given credit of TDS in relation to those additions. It was submitted by the ld. AR that since amounts had been added, credit for taxes deducted should be given. We have already set aside the issue of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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