9911796707
TMI Blog2015 (3) TMI 1132X X X X Extracts X X X X X X X X Extracts X X X X ..... e update - Held that:- The amount was paid to M/s Intersystem India Pvt. Ltd., Gurgaon relating to payment of Catche Licenses Procurement. This has also been disallowed by the AO invoking the provision of section 40(a)(ia) for non deduction of TDS, treating the nature of payment as royalty. In view of the submissions made under Ground No. 2, as aforesaid, the disallowance is not called for - Decided in favour of assessee. Disallowance on account of expenditure made on Tour to Maldives - Held that:- The total expenses incurred on foreign travel to Maldives were ₹ 4,43,893 out of which an amount of ₹ 2,96,861 only has been disallowed which shows that the AO himself does not fully think the expenses not for business purposes. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue and Cross objection filed by the Assessee emanate out of the Order passed by the Ld. CIT(A)-IX, New Delhi pertaining to assessment year 2008-09. 2. The grounds raised in the Revenue s appeal read as under:- 1. The order of the Ld. CIT(A) is erroneous and contrary to the facts and law. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of ₹ 76,23,426/- u/s. 40(a)(ia) on account of payment made to licensor. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of ₹ 13,78,496/- u/s. 40(a)(ia) on account of payment made for Catche License procurement and software update catch. 4. On the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice u/s. 143(2) was issued and served on the assessee. The assessment was completed u/s. 143(3) vide order dated 28.12.2010 at an income of ₹ 77,46,180/- making various additions. 5. At the time of hearing, Ld. Counsel of the assessee filed Synopsis and stated that the facts of the case and the law applicable to the issues in dispute have already been decided in favor of the assessee in assessee s own case by the Hon ble Jurisdictional High Court, therefore, in view of the synopsis the appeal filed by the Revenue may be dismissed. 6. On the contrary, Ld. DR relied upon the order passed by the AO and reiterated the contentions raised by the Revenue in the Grounds of Appeal. 7. We have heard both the counsel and perused the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om Track Health has been treated as purchaser only. Assessments have been made under section 143(3) of the Act. No doubt the AO had relied on the order of Delhi ITAT in the case of Microsoft Corporation, the facts are distinguishable with the facts of the assessee. After going through the orders passed by the ITAT, Delhi Bench and the Hon ble Jurisdictional High Court in the case of CIT vs. Dynamic Vertical Software India (P) Ltd. (2011) 332 ITR 222 (Del) whereby it has been held that:- 3. What is found, as a matter of fact, is that the assessee has been purchasing the software from Microsoft and sold it further in Indian market. By no stretch of imagination it would be termed as royalty . 8.1 Keeping in view of the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance on account of expenditure made on Tour to Maldives amounting to ₹ 2,96,861/-. We find that the AO has discussed this issue at para 5 and at page 3 regarding the payment made on the allegation that no business was explored during the year in consequence to vistis to Maldives, out of total expenditure of ₹ 4,43,893/- an amount of Rs, 2,96,861/- disallowed. In appeal Ld. CIT(A) has discussed the same at page 11 vide para 7. After going through the order of the Revenue Authorities and the Written submissions of the assessee, we are of the view that the Managing Director of the company visited Maldives for exploring the business prospects. The reason for disallowance given by the AO is that no business was explored during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o ₹ 4,38,980/-. We find that the AO has discussed this issue at para 6 and at page 3. The AO disallowed the amount relating to client hardware holding the same to be not related to current year. There was an agreement with Sir Ganga Ram Hospital, dt.12.11.2002, (PB Pg. 79), whereby it was an obligation of the assessee to supply computer hardware as per Article 3 of the Agreement. Just on the basis of date of agreement the AO disallowed the expense. The facts are that the agreement was an going agreement and software are generally implemented on make shift servers and once it is tested and completed in all respects, it is moved to the New Server. The copy of ledger account is placed at PB Pg. 77-78. Further copies of emails from Mr. Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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