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| The Tax Publishers2019 TaxPub(DT) 3939 (Pune-Trib) INCOME TAX ACT, 1961
Section 201(1)
Where there was no merit in the orders of authorities where assessee had purchased shrink wrap software or off-shelf software, which was copyrighted article and not purchased any copyright and hence the same was not liable to deduct tax at source under section 195. Thus, AO was directed to delete demand created under section 201(1) and interest charged under section 201(1A).
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Interest under section 201(1) - Assessee-in-default - Failure to deduct tax at source under section 195 -
The issue which arose in present appeal was against non-deduction of tax at source out of payments made for software purchased by assessee. The case of assessee was that it was across counter purchase, wherein assessee did not acquire any copyright but it purchased copyrighted article for its application purposes. Held: There was no merit in the orders of authorities where assessee had purchased shrink wrap software or off-shelf software, which was copyrighted article and not purchased any copyright and hence the same was not liable to deduct tax at source under section 195. Hence, assessee could not be held to be liable for non-deduction of tax under section 201(1) and interest charged under section 201(1A). Thus, AO was directed to delete demand created under section 201(1) and interest charged under section 201(1A).
REFERRED : CIT v. Samsung Electronics Co. Ltd. & Ors. ITA No. 2808 of 2005, dated 15-10-2011 : 2011 TaxPub(DT) 2175 (Karn-HC) CIT v. Synopsis International Old Ltd. ITA Nos. 11 to 15/2008 & 17/2008, dated 3-8-2010 : 2013 TaxPub(DT) 0529 (Karn-HC) John Deere India (P) Ltd. v. Dy. DIT (2019) 70 ITR (Trib) 73 (Pune) : 2019 TaxPub(DT) 1721 (Pune-Trib) DDIT and others v. M/s. Reliance Infocom Ltd. (TS-433-ITAT-2013-(Mum) : 2014 TaxPub(DT) 0433 (Mum-Trib)
FAVOUR : In assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 271C
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