9911796707
TMI Blog2016 (1) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... nue in this appeal is that Ld. CIT(A) erred in deleting the addition of Rs. 1,02,39,690/- on account of payment of software charges without making TDS. 3. Briefly stated facts are that during the year assessee debited an amount of Rs. 1,02,39,690/- as payment towards software development charges without deducting TDs u/s. 194-J of the Act. On question by AO to assessee about the violation of TDS provision assessee submitted that expense claimed is for the purchase consideration of new software package/products/components etc., Therefore the provision u/s 194-C/J will not attract to the said transaction. However, AO found from the books of account that the assessee has booked an expense of Rs. 4,46,354/- under purchase head. Therefore, AO h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siyan, Ld. Authorized Representative appearing on behalf of assessee and Shri P.B. Pramanik, Ld. Departmental Representative appearing on behalf of Revenue. 5. We have heard rival submissions of both the parties and perused the materials available on record. Ld. DR submitted that it is not a case of purchase of software and drew our attention on page 3 to 19 of assessee's paper book where the bills for software purchase were placed and on these bills it was clearly mentioned in the column of particulars that description/service rendered. Hence, it is beyond doubt that invoice has been issued by party to assessee for developing the software which has to be classified as service and accordingly the provisions of TDS are very much attract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ense per se and he relied on the order of Ld. CIT(A). From the aforesaid discussion, we find that AO has disallowed the expense claimed by assessee on account of violation of provision of Sec. 194-C of the Act and AO inferred from the classification of the expense under head "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 Rs. 2,20,400/- on account of payment of trai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rival contentions of both the parties and perused the materials available on record. Ld. DR supported the orders of AO whereas Ld. AR supported the order of Ld. CIT(A). From the aforesaid discussion, we find 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 at pages 33 to 37 of paper book. 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 em ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed 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. We have heard rival contentions of both the parties and perused the materials available on record. Ld. DR vehemently relied on the order of Assessing Officer whereas Ld. AR relied on the order of Ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
