Mol Corporation, New Delhi V. ACIT, Circle-2(2)(1).International Taxation, New Delhi

ITA 1914/DEL/2022

AI Insights

Mol Corporation appealed against the order passed by the Assessing Officer (AO) under sections 143(3) read with 144C(13) of the Income Tax Act, 1961, which included income from cloud services as taxable 'royalty'. The Tribunal noted that similar issues had been adjudicated in favor of the assessee in previous years, where it was established that receipts from cloud services do not constitute royalty income. The Tribunal referenced several precedents, including decisions from the Delhi High Court and the Supreme Court, which supported the assessee's position. The Tribunal allowed the appeal, setting aside the AO's order and directing compliance with the DRP's directions on TDS.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 131055 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 06-11-2022
• Assessment Year: 2018-2019
• Appeal Filed On: 17-08-2022
• Other Referred Cases: Engineering Analysis Centre of Excellence (P) Ltd. vs. Commissioner of Income Tax, DIT vs. Infrasoft Ltd., Sales force.com Singapore Pte. vs. Dy. D.I.T. Circle-2(2)
• Laws Referred To: Income Tax Act, 1961, India-USA Double Taxation Avoidance Agreement
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 10; 90; 11; 22

Judgement Text

Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI Before Sh. Saktijit Dey, Judicial Member Dr. B. R. R. Kumar, Accountant Member ITA No. 1914/Del/2022 : Asstt. Year : 2018-19 Mol Corporation, C/o. Mr. Nirmal Malpani Eenst & Young LLP 3 rd & 6 th Floor, Worldmark 1, IGI Airport Hospitality District Aerocity, New Delhi-110037 Vs ACIT, Circle-2(2)(1), International Taxation, New Delhi (APPELLANT) (RESPONDENT) PAN No. AAFCM9676A Assessee by : Sh. Nageshwar Rao, Adv. Revenue by : Sh. Gangadhar panda, CIT-DR Date of Hearing: 07.11.2022 Date of Pronouncement: 28.12.2022 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order dated 30.09.2021 passed by the AO u/s 143(3) r.w.s. 144C(13). 2. The assessee has raised the following grounds of appeal: 1 . T h a t o n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t he c a s e a n d i n l a w , t h e D e p u t y C o m m i s s i o n e r o f I n c o m e T a x , C i r c l e - 2 ( 2 ) ( 1 ) , I n t e r n a t i o n a l T a x a t i o n , D e l h i ( ‘ L d . A O ’ ) h a s e r r e d i n c o m p u t i n g t h e t o t a l i n c o m e o f t h e A p p e l l a n t a t I N R 1 7 1 , 3 6 , 0 1 ,9 0 0 a s a g a i n s t t h e r e t u r n e d i n c o m e o f N i l . 2. Taxability of consideration from cloud services 2 . 1 T h a t o n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c a s e a n d i n l a w , L d . D i s p u t e R e s o l u t i o n P a n e l ( ‘ D R P ’ ) a nd t h e L d . A O h a v e e r r e d i n h o l d i n g t h a t t h e r e v e n u e e a r n ed b y M i c r o s o f t R e g i o n a l S a l e s P t e . L t d . ( ‘ M R S ’ ) f r o m c l ou d s e r v i c e s a m o u n t i n g t o I N R 1 , 7 1 , 3 6 , 0 1 , 9 0 0 i s t a x a b l e a s “ R o y a l t y ” i n I n d i a i n t h e h a n d s o f t h e A p p e l l a n t w it h o u t a p p r e c i a t i n g t h e s a m e i s n o t i n t h e n a t u r e o f “ R o y al t y " Page | 2 u n d e r t h e I n c o m e T a x A c t , 1 9 6 1 ( ‘ t h e A c t ' ) o r I n d i a - U S A D o u b l e T a x a t i o n A v o i d a n c e A g r e e m e n t ( ‘ D T A A ’ ) . 2 . 2 L d . D R P a n d L d . A O e r r e d i n f a i l i n g t o a p p r e c ia t e t h a t r e c e i p t o f I N R 1 , 7 1 , 3 6 , 0 1 , 9 0 0 i s n o t t a x a b l e a s “ R oy a l t y ” o r “ O t h e r w i s e " i n t h e h a n d s o f A p p e l l a n t , u n d e r t h e A c t o r I n d i a - U S A D T A A a n d f u r t h e r c o n c l u s i o n s r e a c h e d a r e c o n t r a r y t o r e l e v a n t d e c i s i o n s o f c o u r t s . Other Grounds 3 . T h a t o n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t he c a s e a n d i n l a w , t h e L d . A O h a s g r o s s l y e r r e d i n n o t t r a n s f e r r in g t h e T D S c r e d i t a g g r e g a t i n g t o I N R 1 6 , 6 1 , 8 9 , 9 3 6 ( a s p a r t o f T D S c l a i m e d b y M R S i n i t s r e t u r n o f i n c o m e a n d a d d i t i o n a l T D S cr e d i t o f I N R 2 , 0 2 , 8 3 , 3 7 1 c l a i m e d d u r i n g t h e c o u r s e o f a s s e s s m e n t p r o c e e d i n g s ) c l a i m e d b y M R S t o M O L C d e s p i t e t h e d i re c t i o n s o f L d . D R P . 4 . T h a t o n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t he c a s e a n d i n l a w , t h e L d . A O h a s e r r e d i n l e v y i n g e x c e s s i n t e r e st u n d e r s e c t i o n 2 3 4 B o f t h e A c t . 5 . T h a t o n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t he c a s e a n d i n l a w , t h e L d . A O h a s e r r e d i n i n i t i a t i n g p e n a l t y p r oc e e d i n g s u n d e r s e c t i o n 2 7 0 A o f t h e A c t a g a i n s t t h e A p p e l l a n t. ” 3. At the outset, it was brought by the notice that the issue royalty stands adjudicated by the Tribunal in the case of the assessee for the earlier years. For the sake of ready reference, the relevant portion of the order in ITA NO. 554/Del/2021 for A.Y. 2017-18 is being reproduced as under: “A t t h e o u t s e t i n t hi s c a s e , l d . c o u n s el of t h e a s ses s e e s u b m i t t ed t h a t t h e i s s u es i n v ol v e d i n t hi s a p p ea l re l a t e t o t a x a b i l i t y of r ec ei p t s t o wa r d s s o f t w a r e l i c e nc i n g an d c l o u d s er v i c es w hi c h a r e a l r ea d y d ec i d ed i n f a v o u r o f a s se s s e e b y I TA T d e c i s i o n i n a s s es s e e ’s o w n c a s e f or A Y 2 0 1 2 -1 3 i n I TA N os . 1 5 5 3 & 1 5 5 4 /Del /2 0 1 6 v i d e o r d e r d a t ed 1 3 . 0 4 .2 0 22 a n d I TA N os .7 8 5 5 & 7 8 5 6 /D e l /2 0 1 9 f or A Ys 2 0 1 5 -1 6 & 2 0 1 6-1 7 . 6 . P er c o n t r a , l d . D R f or t h e R e v e n u e d i d n o t d i s p ut e t h e p r o p os i t i o n t h a t t h e i s s ue s a r e s o c o v e r ed . 7 . W e h a v e c a r e f ul l y c o n s i d e r ed t h e s u b m i s s i o n s a n d p e r us e d t h e r e c or d s . B r i e f f a c t s o f t h e c a s e a r e t ha t t h e as s es s e e Page | 3 c o mp a n y , M O L C o r p o r a t i o n i s a c om p a n y i nc or p or a t e d i n t h e U ni t ed S t a t es o f A m e r i c a ha v i n g i t s r e gi s t er e d o f f ic e a t C / o C o r p o r a t i o n S er v i c es C o mp a n y , 2 2 1 5 - B , R e n a i s s a n c e Dr i v e , L a s V e g a s , N e v a d a 8 9 1 1 9 , U SA . M i c r os of t C o r p o r a t i o n, US A i s t h e ul t i m a t e p a r e n t e n t i t y of t h e a s s es s e e . A s s es s e e i s a t a x r es i d e n t of US A a nd t h e r e f or e , i t i s e n t i t l e d to c l a i m t h e a p p l i c a b i l i t y o f b e n e f i c i a l p r o v i s i o n s o f t h e D o u b le T a xa t i o n A v oi d a nc e A g r e e m e n t e n t er e d i n t o b e t w e e n I n d i a a nd U S ( I n d i a - US t a x t r ea t y ) v i s -a - v i s t he p r o v i s i o ns o f t h e I nc o m e -t a x A c t , 1 9 6 1 (f or s h o r t ‘ t h e A c t ’ ) . T h e A O /TP O m a d e a d j us t m e n t /a d d i t i o n t o t h e r e t u r n e d i nc o m e w hi c h w as c o n f i r m e d b y D R P b a s e d u p o n e a r l i er y e a r s i m i l a r d ir ec t i o n o f D R P . T h e a d d i t i o n m a d e a s p e r A O ’ s o r d er r e a d a s u n d e r :- “1 3 . F ol l o wi n g t h e d i r ec t i o n s of t h e H o n ’ b l e DR P, th e t ot a l i nc om e o f t h e a s s es s e e i s a s s es s e d a t R s .1 7 5 , 5 0 ,7 5 ,6 6 7 /- (4 4 , 1 7 ,4 6 , 4 7 8 /- + 1 , 3 1 ,3 3 , 2 9 ,1 8 9 /- ) o n s u b s t a nt i v e b a s i s a s r oy a l t y i nc om e t a x a b l e @ 1 0 % a s p e r I nc o m e T a x Ac t, 1 9 6 1 a l o n g wi t h a p p l i c a b l e s u r c h a r g e a n d c es s . C h a rg e i nt e r es t u /s 2 3 4 A , 2 3 4 B , 2 3 4 C & 2 3 4 D , a s a p p l i c a b l e a f t e r gi v i n g c r ed i t t o p r e -p a i d t a x es . N ec es s a r y f or m s a nd n o t i c e s a r e b ei n g i s s u e d w i t h t hi s or d er . P e n a l t y p r o c e e d i n g s u /s 2 7 0 A i s b ei n g i ni t i a t e d s e p a r a t el y f o r m i s - r e p or t i n g of i nc o m e . T h e o r d er s h o ul d b e r ea d t o g eth e r wi t h o r d e r o f DR P a t t a c h e d wi t h t h e a s s e s s m e n t or d er . ” 8 . T h e I TA T i n a s s es s e e ’s o w n c a s e f o r A Y 2 0 1 2 -1 3 ref e r r e d a b o v e h a s a d j u d i c a t ed t h e i d e n t i c a l i s s u e s a s u n d e r: - “Issue of taxability of revenue from sale of software 6 . O n b e ha l f of t h e a s s e s s e e i n r e g a r d t o g r o u n d n o 1 i t w a s s u b m i t t ed t h a t L d . Ta x A u t h or i t i e s h a v e f a i l e d t o f ol l o w t h e r a t i o a n d p r i nc i p l es o f l a w i n r e ga r d t o t h e s a l e o f s of t w a r e p r o d u c t s n o t gi v i n g r i s e t o r o y a l t y i nco m e a s h el d b y H o n ’ b l e D el hi H i g h C o u r t i n D I T v s . I n fr a s of t L t d . (2 0 1 4 ) 2 2 0 Ta xm a n . 2 7 3 . It w a s s u b m i t t ed t h a t H o n ’ bl e Page | 4 S u p r e m e C o u r t of I n d i a i n i t s j u d g m e n t d a t e d 0 2 .0 3 .2 0 2 1 i n E n gi n e e r i n g A n a l y s i s C e n t r e o f E xc e l l e nc e ( P ) Ltd . v s . C o m m i s s i o n er o f I nc o m e T a x (2 0 2 1 ) 1 2 5 t a xm a n n . c o m 42 (S C ) ha s up h el d t h e H o n ’b l e D el hi H i g h C o u r t j u d g m en t . I t w a s s ub m i t t e d t h a t i n t h e c a s e o f G r a c em a c C or p or a ti o n w hi c h s t a n d s a m a l ga m a t ed wi t h M O L C o r p or a t i o n f o r th e a s s es s m e n t y e a r 2 0 0 5 -0 6 , 2 0 0 6 -0 7 a nd 2 0 0 7 -0 8 t h e C o- or d i n a t e B e n c h B a t D el hi b y o r d e r d a t e d 1 6 . 1 2 . 2 0 2 0 ha s a l l o w e d t h e a p p e a l s w hi c h h a v e b e e n f u r t h e r u p h el d b y H o n ’ b l e D el hi H i g h C o u r t b y j u d g m e n t d a t e d 0 7 . 0 3 .2 02 2 . T h e L d DR s u p p o r t ed t h e f i nd i n gs of T a x a u t h or i t i es b el o w . 6 . 1 G i v i n g t h o u g h t f ul c o n s i d e r a t i o n t o t h e m a t t er o n r e c o r d , t h e B e nc h i s o f c o ns i d er ed o p i ni o n t h a t t h e r e v e n u e h a s b e e n f ol l o wi n g a p er s i s t e n t a p p r o a c h i n r e g a r d t o a s s e s s e e a n d i t s s i s t e r a s s es s e e s u b s i d i ar i e s of M S C o r p h ol d i n g s a l e o f M S R et a i l S o f t w a r e Pr o d u c t s t o I n d i a n D i s t r i b u t o r s a s r o y a l t y u n d e r t h e A c t a s w e ll a s u n d e r D TA A b et w e e n I nd i a a n d US . T h e a s s es s m e n t i n t h e h a n d s o f p r es e n t a s s es s e e w a s m a d e o n p r ot ec t i v e b as i s w hi l e t h e s u b s t a n t i v e a s s es s m e n t w a s i n t h e h a n d s of M O L C. T h e a s s e s s m e n t i n t h e h a n d s of G r a c em a c w hi c h s t a n d s a m a l g a m a t ed wi t h M O L C s t a n d s s e t a s i d e i n r eg a r d t o a s s es s m e nt y e a r s 2 0 0 5 -0 6 , 2 0 0 6 - 0 7 a n d 2 0 0 7 -0 8 b y t h e c o - o r d i na t e B e nc h ’ s j u d g m e n t d a t e d 1 6 .1 1 . 2 0 2 0 whi c h h a v e b e e n f u r t h e r up h el d b y H o n ’ b l e D e l hi H i g h C o u rt b y j u d g m e n t d a t ed 0 7 . 0 3 .2 0 2 2 . T h e s a m e w e r e b a s e d o n th e p r i nc i p l es o f l a w t ha t s a l e o f s o f t w a r e p r od u c t s d oe s n o t gi v e r i s e t o r oy a l t y i n c o m e a s l a i d d o w n b y t h e H o n’ b l e De l hi H i g h C o u r t i n I n f r a s of t Lt d . c a s e w hi c h h a v e n o w f ur t h e r b e e n a f f i r m e d b y t h e H o n ’ b l e S up r e m e C o u r t o f I n d i a i n t h e c a s e o f E n gi n e e r i n g A n a l y s i s C e n t r e o f E xc el l e n c e P . L t d . (s u p r a ). 6 . 2 I n t h e l i g h t o f a f or es a i d a s t h er e a r e n o d i s t i n g ui s hi n g f a c t s wi t h r e g a r d t o p r e s e n t a s s e s s me n t Page | 5 y e a r s a n d a s t hi s Be n c h h a s a l s o a l l o w e d t h e s i m i l ar g r o u n d s f o r t h e a s s es s m e n t y e a r A Y f or 2 0 1 0 -1 1 a n d 2 0 1 1 -1 2 , v i d e s e p a r a t e o r d e r o f e v e n d a t e t h e g r o u nd s i n h a n d a r e s us t a i n e d . T h e a s s e s s m e nt or d e r f o r A Y f or 2 0 1 2 - 1 3 a r e l i a b l e t o b e s e t a s i d e . ” “ Is s u e o f t a x a b i l i t y o f c l o u d b a s e d s er v i c e r ec ei p ts 7 . It w a s s u b m i t t e d f or t h e a s s e s s e e t h a t L d . Ta x A u t h or i t i es b e l o w h a v e f a i l ed t o a p p r ec i a t e t h e f u nc t i o na l a s p ec t s o f Cl o u d b a s e s e r v i c e w hi l e h ol d i n g t h e s u b s c r i p t i o n t o c l o ud b a s e s er v i c e a s r oy a l t y . I n thi s c o n t e x t , t h e c o - o r d i na t e b e nc h j u d g m e n t i n M/ s . S a l es f o r c e .c om S i n g a p o r e P t e. V s . Dy . D . I. T . C i r c l e- 2 (2 ) I TA N o. 4 9 1 5 /D E L/2 0 1 6 [A .Y 2 0 1 0 -1 1 ] wi t h s i x o t h e r c o n n e c t e d w a s r el i e d t o c o n t e n d t h a t s u b s c r i p t i o n to t h e c l o ud c o mp u t i n g s er v i c e s d o n o t g i v e r i s e r o y a l t y inc o m e . T h e L d DR s u p p o r t ed t h e f i nd i n gs of T a x a u t h or i t i es b el o w . 7 . 1 G i v i n g t h o u g h t f ul c o n s i d e r a t i o n t o t h e m a t t er o n r e c o r d , t h e b e nc h i s o f c o ns i d e r e d v i e w t h a t t h e c lo u d b a s e s er v i c es d o n o t i nv o l v e a n y t r a n s f er o f r i g h t s t o th e c u s t o m e r s i n a n y p r oc e s s . T h e g r a n t of r i g h t t o i nst a l l a n d us e t h e s o f t w a r e i nc l ud e d wi t h t h e s ub s c r i p t i o n d o es n ot i nc l ud e p r o v i d i n g a ny c o p y o f t h e s a i d s o ft w a r e t o t h e c u s t o m e r . T h e a s s es s e e ’s c l o ud b a s e s e r v i c es a r e t ho u g h b a s ed o n p a t e nt s / c op y r i g h t b u t t h e s u b s c r i b e r d o es n o t g e t a n y r i g ht o f r e p r o d uc t i o n . T h e s e r v i c es a r e p r ov i d e d o nl i n e v i a d a t a c e n t r e l o c a t e d o u t s i d e I n d i a . T h e Cl o ud s er v i c es m e r el y f a c i l i t a t e t h e f l o w o f us e r d a t a fro m t h e f r o n t e nd u s er s t h r o u g h i n t er n e t t o t h e p r o v i d er ’s s y s t e m a nd b a c k . T h e l d . A O ha s fa l l e n i n e r r or i n i nt e r p ret i n g i t a s l i c e ns i n g o f t h e r i g h t t o us e t h e a b o v e C l o u d C om p u t i n g I n f r a s t r uc t ur e a n d S o f t w a r e (p a r a 1 0 .5 o f t h e Ld . AO or d er ) . T h us t h e s u b s c r i p t i o n f e e i s n o t r o y a l t y b ut m er el y a c o n s i d er a t i o n f o r o nl i n e a c c es s o f t h e c l o u d c om pu t i n g Page | 6 s er v i c es f or p r oc es s a n d s t or a g e o f d a t a o r r u n t h e a p p l i c a t i o ns . 7 . 2 W h i l e d e a l i n g wi t h s i m i l a r q u es t i o n i n r e g a r d t o t h e c a s e of M /s . S a l e s f or c e .c om S i n g a p o r e P t e . ( s up r a ) w h e r e t h e s a i d a s s es s e e w a s p r ov i d e r of c o mp r e h e n s i v e c u st o m e r r e l a t i o n s hi p m a n a g e m e n t s e r v i c i n g t o i t s c us t o m e r by us i n g C l o ud C o mp u t i n g S e r v i c es / W e b C a s t i n g S e r v i ce s , t h e B e n c h i n i t s or d e r d a t ed 2 5 . 0 3 .2 0 2 2 h el d a s u n de r : “2 8 . C o ns i d e r i n g t h e fa c t s o f t h e c a s e i n t ot a l i t y , i n l i g h t o f t h e M a s t er S u b s c r i p t i o n A g r e e m e n t , w e a r e o f t h e c o n s i d e r ed v i e w t h a t t h e c us t o m e r s d o n o t ha v e a ny a c c es s t o t h e p r oc es s o f t h e s e r v i c e p r o v i d er i . e . t h e a s s es s e e , a n d t h e a s s es s e e d o e s n o t h a v e a ny a c c es s e x c e p t ot h e r wi s e p r o v i d e d i n t h e m a s t e r s u b s c r i p t i on a gr e e m e nt t o t h e d a t a o f t h e s u b s c r i b e r . 2 9 . I n o u r c o n s i d e r ed o p i ni o n , a l l t h e e q ui p m e n t s and m a c hi n es r el a t i n g t o t h e s er v i c e p r o v i d e d b y t h e a ss e s s e e a r e u n d e r i t s c o n t r ol a n d a r e o u t s i d e I nd i a a n d t h e s u b s c r i b e r s d o n ot h a v e a n y p h y s i c a l a c c es s t o t h e eq u i p m e n t p r o v i d i n g s y s t e m s er v i c e w hi c h m ea ns t h a t t h e s u b s c r i b e r s a r e o nl y u s i n g t h e s e r v i c es p r o v i d ed b y t h e a s s es s e e . ” 7 . 3 T h e M u m b a i Tr i b u n a l i n t h e c a s e o f DD I T v S a v vi s C o m m u n i c a t i o n C or p or a t i o n [2 0 1 6 ] 6 9 t a xm a n n . c o m 1 0 6 ( M um b a i - Tr i b . ) ha s h el d t ha t p a y m e n t r e c e i v ed fo r p r o v i d i n g w e b h o s t i n g s er v i c e s t h o u g h i n v o l v i n g u s e o f c er t a i n s c i e n t i f i c eq ui p m e n t c a n n o t b e t r ea t ed a s ‘c o ns i d e r a t i o n f o r u s e of , or r i g h t t o us e o f , s c i en t i f i c eq u i p m e n t ’ w hi c h i s a s i ne q u a n o n f or t a x a b i l i t y un d e r s ec t i o n 9 (1 ) ( v i ) , r e a d wi t h E xp l a n a t i o n 2 (i v a ) t h er e t o a s a l s o a r t i c l e 1 2 o f I n d o -US D TA A . T h e C h e n n a i Tr i b u na l i n t h e c a s e o f A C I T v V i s h w a k S ol ut i o ns P v t . L t d I TA No . 1 9 3 5 & 1 9 3 6 /M DS /2 0 1 0 d a t e d 3 0 .0 1 . 2 0 1 5 ha s u p h el d t he Page | 7 f i n d i n gs o f C I T (A ) t h a t “t h e a m o u n t p a i d t o t h e n o n- r e s i d e n t i s t o w a r d s hi r i n g of s t or a g e s p a c e. ” T h e af o r e s a i d s q ua r el y c ov e r s t h e c o n t r ov e r s y i n r e g a r d t o t h e p res e n t a s s es s e e a l s o . I n t h e l i g ht a f o r es a i d , t h e B e n c h i s o f c o n s i d e r ed v i e w t h a t t h e l d . Ta x A u t h or i t i es b e l o w h a d f a l l e n i n e r r o r i n c o ns i d e r i n g t h e s u b s c r i p t i o n r ecei v e d t o w a r d s C l o ud S e r v i c es t o b e r o y a l t y i nc o m e . ” T h e a f o r e s a i d w a s a l s o f ol l o w ed b y I TA T i n a s s e s s e e’s o w n c a s e f or A Ys 2 0 1 5 -1 6 & 2 0 1 6 -1 7 . 9 . F a c t s i n t h e p r e s e n t c a s e a r e i d e n t i c a l . H e n c e r es p e c t f ul l y f ol l o wi n g t h e p r e c ed e n t f r o m c o o r d i n a t e B e nc h , w e se t a s i d e t h e or d e r of R e v e n u e a u t h or i t i es a nd d e c i d e t h e i s su es i n f a v o u r of t h e a s s e s s e e . ” 4. Hence, respectfully following the decision of the Tribunal in the case of the assessee for all the earlier years, the appeal of the assessee is hereby allowed. 5. With regard to the issue of TDS, the AO is directed to follow the directions of the ld. DRP without fail. 6. In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 28/12/2022. Sd/- Sd/- (Saktijit Dey) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 28/12/2022 *Subodh Kumar/AK, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR