ACIT , CHENNAI V. M/S SAIPEM INDIA PROJECTS PVT LTD , CHENNAI

ITA 1088/CHNY/2022

AI Insights

The case involves an appeal by the Assistant Commissioner of Income Tax against the order of the CIT(A) which had deleted the disallowance of software support charges made by the Assessing Officer. The disallowance was initially made due to non-deduction of TDS under section 195 of the Income Tax Act, 1961. The CIT(A) had relied on previous ITAT decisions and High Court rulings which favored the assessee. The revenue challenged this decision, citing different precedents and arguing that the payments for software constituted royalty and thus should have TDS deducted. However, the Tribunal found that the issue was settled in favor of the assessee by the Supreme Court's decision, which was followed by the High Court of Madras in the assessee's earlier cases.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134702 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 13-06-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 13-12-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Double taxation relief; Permanent establishment; Non-deduction of tax; Tax effect; TDS; Set aside
• Section: 143(3); 195; 9(1); 9(1); 9(1)

Judgement Text

आयकर अपीलीय अिधकरण, ‘ बी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI ᮰ी वी दुगाᭅ राव, ᭠याियक सद᭭य एवं ᮰ी मंजुनाथ. जी, लेखा सद᭭य के समᭃ BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 1088/Chny/2022 िनधाᭅरण वषᭅ / Assessment Year: 2016-17 Assistant Commissioner of Income Tax, Corporate Circle 3(1), Chennai. v. M/s. Saipem India Projects Pvt Ltd., No. 4, 4 th Floor, Yarlagadda Towers, Nungambakkam, Chennai – 600 034. [PAN: AAACI-7915-F] (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri. S. Senthil Kumaran, CIT ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. S.P. Chidambaram, Advocate सुनवाई कᳱ तारीख/Date of Hearing : 14.06.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 28.06.2023 आदेश /O R D E R PER MANJUNATHA. G, ACCOUNTANT MEMBER: This appeal filed by the revenue is directed against the order passed by the learned Commissioner of Income Tax (Appeals)-16, Chennai, dated 07.10.2022 and pertains to assessment year 2016-17. 2. The revenue has raised the following grounds of appeal: “1. The order of the Ld. CIT(A) is contrary to the law and facts of the case. :-2-: ITA. No: 1088/Chny/2022 2. The Ld. CIT(A) erred in deleting the disallowance of deduction u/s 40(a)(i) of the Act by relying on the decision of the Hon'ble Madras Court in TCA Nos.549,554,555 &558/2021 vide order