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TMI Blog2019 (11) TMI 1683X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The fact that an appeal against the said decision of the Hon'ble Karnataka High Court is pending before the Hon'ble Supreme Court cannot be the basis not to follow the decision of the Hon'ble Karnataka High Court. We also observe that the ground of appeal filed by the assessee are general and there is no reference to any particular provisions of DTAA based on which it is claimed that the sum in question is not taxable in India. Validity of initiation of reassessment proceedings on the ground that proviso to Sec.147 of the Act is applicable and the reopening is based purely on a change of opinion - These grounds were rightly rejected by the CIT(A) as there was no proceedings u/s.143(3) for AY 2005-06 and therefore the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chargeable to tax in the hands of the non-resident in India. Since the assessee failed to do so, the revenue authorities were of the view that the sum of ₹ 12,54,85,108/- claimed as revenue expenditure in AY 2005-06 and ₹ 10,77,21,425/- claimed as revenue expenditure in AY 2006-07 should be disallowed as per the provisions of Sec.40(a)(ia) of the Act for non-deduction of tax at source. The question before the AO was as to whether the payment in question constitute royalty within the meaning of the Act as well as the Double Taxation Avoidance Agreement (DTAA) with the respective countries of which the payees were tax residents. The assessee took the stand that the payment in question is not in the nature of royalty but the said p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is identical to the case decided by the Hon'ble Karnataka High Court in the case of Samsung Electronics (supra) and therefore, the decision of the Hon'ble Karnataka High Court has to be followed. The fact that an appeal against the said decision of the Hon'ble Karnataka High Court is pending before the Hon'ble Supreme Court cannot be the basis not to follow the decision of the Hon'ble Karnataka High Court. We also observe that the ground of appeal filed by the assessee are general and there is no reference to any particular provisions of DTAA based on which it is claimed that the sum in question is not taxable in India. In AY 2005-06, the Assessee has challenged the validity of initiation of reassessment pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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