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TMI Blog2019 (4) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... T [2019 (4) TMI 308 - ITAT PUNE] held that the payments made by assessee for use of software were not taxable as royalty and hence, the assessee has not defaulted in not deducting tax at source out of such payments. Consequently, there is no merit in raising the demand under section 201(1) and charging interest under section 201(1A) of the Act. Similar stand was in respect of subscription char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following grounds of appeal:- 1. On the facts and circumstances of this case, the Ld. CIT(A) erred in holding that no penalty u/s 271C is leviable. 2. On the facts and circumstances of this case, the Ld. CIT(A) erred in holding that no penalty u/s 271C is leviable despite holding that tax and interest u/s 201(1) and 201(1A) was correctly levied on certain payments, while allowing some rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xable as royalty under DTAA with respective countries. Accordingly, the Assessing Officer taxed the payments made for acquiring the right to use software and database access charges as royalty , payment of consultancy charges as Fees for Technical Services (FTS). Thus, the Assessing Officer held the assessee in default in not deducting tax at source out of such payments made of ₹ 2,60,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing other related software. 8. The Tribunal in Capgemini Technology Services India Ltd. Vs. DDIT in ITA No.2011/PUN/2014 and cross appeal filed by Revenue in ITA No.2182/PUN/2014, relating to assessment year 2007-08, order dated 28.02.2019 held that the payments made by assessee for use of software were not taxable as royalty and hence, the assessee has not defaulted in not deducting tax at sou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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