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TMI Blog2016 (1) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in favour of assessee Addition on account of payment of training charges to M/s Leggiadro Consultancy Pvt. Ltd. without making TDS - CIT(A) deleted the addition - Held that:- Assessee has incurred this expense for upgrading the knowledge of the personnel of the company. As and when there is a query about the technical matter the employees used to avail the services by accessing the website of the party online. Ld. AR drew our attention on agreement between assessee and M/s Leggiadro Consultancy Pvt. Ltd. which is placed. We find that said expenses incurred by assessee does not attract the provision of TDS as this expense relates to up-gradation of the knowledge of its employees and for this purpose the assessee has availed certain online facility. Therefore, we are not inclined to interfere into the order of Ld. CIT(A). Hence, this ground raised by Revenue is dismissed.- Decided in favour of assessee Addition on account of reimbursement of expenses without making TDS - CIT(A) deleted the addition - Held that:- AO has disallowed the expense on account of violation of TDS provision. However, as per the submission of assessee this transaction of reimbursement was out of purvi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount in which the assessee did not debit the purchase of canned software, I am of the opinion that there is no wrong in debiting the purchase of canned software under the account head Software Development Charges which was the policy maintained all through by the assessee. In the circumstances, this ground could go in favour of the appellant. The Ground is allowed. Being aggrieved by this order of Ld. CIT(A) Revenue is in appeal before us on the following ground:- 1. That on the facts and circumstances of the case the Ld. CIT(A) has erred din deleting the additions of ₹ 1,02,39,690/- on account of payment of Software charges without making TDS despite the fact that software charges was paid for the services of vendor for new alternative technology packages, technology up-gradation packages/ products/ components and software driven systems, sub-programmes and subroutines which are in the nature of professional and Technology services and hit by the provision of section 197J of the IT Act for deduction of taxes at source. Shri Ravi Tulsiyan, Ld. Authorized Representative appearing on behalf of assessee and Shri P.B. Pramanik, Ld. Departmental Representative app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... software development charges was liable for TDS. However, we find force from the submission made by Ld. AR before us that it is a pure transaction of purchase. Therefore, the provision of TDS will not be attracted. In view of this, we are inclined not to interfere with the order of Ld. CIT(A) and ground raised by Revenue is dismissed. 6. Next ground raised by Revenue is that Ld. CIT(A) has erred in deleting the addition of ₹ 2,20,400/- on account of payment of training charges to M/s Leggiadro Consultancy Pvt. Ltd. without making TDS. 7. During the course of assessment proceedings, AO found that assessee has incurred an expense of ₹ 2,20,400/- which was shown under the head training charges and said expense is attracting the provision of TDS but assessee failed to deduct TDS from the payment made to the concerned party. On question by AO to assessee regarding the violation of TDS provision, the assessee submitted that such expense was incurred for online facility from the above said company for providing on line training to the employees on purely technical matters. However, AO disregarded the claim of assessee and disallowed the expense on account of violatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es a contractual relationship between the two parties - assessee and M/s NSE.IT.Ltd. Therefore, the provision of Sec. 194C is very much applicable. On finding the violation of TDS provision, AO disallowed the said sum and added it to the income of assessee. 12. Aggrieved, assessee preferred appeal before Ld. CIT(A) who deleted the addition made by Assessing Officer by observing as under:- I have gone through the relevant records, agreement furnished before me and find that there was legitimate expenditure which was reimbursed to NSE-IT Limited as per their agreement, this was also available to the A.O. To that extent, I find that the AO failed to appreciate and take into consideration the Accounts of the assessee and made the addition more on presumption than on the equitable consideration of facts in accordance with law. What would constitute proper facts and details (rf. Assessing Officer's order) in addition to those supplied by the appellant have not been spelt out by the AO. be it what it may this addition cannot be sustained in the circumstances narrated. This ground is allowed. Being aggrieved by this order of Ld. CIT(A) Revenue is in appeal before us. 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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