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TMI Blog2016 (11) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee at Rs. 8,68,39,254/-. 2. First Ground of appeal is about Feng Sui Consultancy charges of Rs. 43.05 lakhs. During the assessment proceedings, the AO directed the assessee to file the details of legal and professional expenses. From the details, he found that it included payment of Rs. 43,05,087/- as Feng Sui consultancy charges of various branches of the assessee. He held that the charges related to the layout and location of the various items of its assets, that the payment made by the assessee would give advantage of enduring nature to it. He issued a show cause notice to the assessee asking it as to why the expenditure should not be disallowed as being capital nature. After considering the submission of the assessee, the AO h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llocation/re adjustment of furniture or certain other items. In our opinion, the FAA was justified in holding that expenditure did not bring into existence any asset. In the case of Estel Technologies Pvt. Ltd. (supra), the Tribunal has allowed the expenditure incurred by the assessee under the head Vastu-Puja as revenue expenditure. Respectfully following the above order and considering the facts of the case, we hold that the order of the FAA does not suffer from any legal infirmity. Confirming the same, we decide first ground of appeal against the AO. 6. Second ground deals with deleting the disallowance of professional charges of Rs. 43.60 lakhs u/s.40 (a)(i) of the Act. During the assessment proceedings, the AO found that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merely because a person had not deducted tax at source from remittance brought it could not be inferred that the person making remittances had committed a mistake in discharging his duties with regard to withholding of taxes, that such obligation would arise only when the recipient had a tax liability in India. After going through the tax invoices, selected by the assessee, the FAA held that the payments were made on account of cost film production, Courier cost, dubs/ cassettes, cost of dubbing job, production estimate, that the payments were not made for obtaining any technical or professional services from the non-residents, that there was no element for royalty/interest involved in the payment, that the payments were made abroad, that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, the FAA were justified in holding that the tax deducted at source provisions were not applicable for such remittances. We find that in the case of IMG Media Ltd. (supra), the Tribunal has dealt with the similar issue and has held that sum paid by an assessee for capturing and delivering live audio and visual coverage of IPL cricket matches was not fee for technical services, as BCCI had not acquired technical expertise from the assessee which would enable them to produce the live coverage feeds on their own after the conclusion of IPL. One of us(JM)was party to that order. The facts of the case were that in that matter the assessee, a UK-based company, was engaged by the BCCI for capturing and delivering live audio and visual coverage o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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