For Full Access To All Latest Judgments on Income Tax
Click Here To Subscribe Now
Take a tour of our Income-Tax Library

1. Rs. 10,37,42,694/- made to M/s. AT & T and M/s. MCI to utilize its bandwidth did not attract deduction of TDS u/s.195 of the Act and consequently no disallowance u/s.40(a)(i) of the Act can be made 2.payment of subscription charges of Rs. 7,75,87,889/- made of M/s. Gartner Group, Faster Research Inc., Mehta Group and Giga Group to confer a license to post enquiries to analysts around the globe via the Web, conference calls and face to face meetings, was not liable to TDS u/s. 195 of the Act and consequently the expenditure cannot be disallowed u/s. 40(a)(i) of the Act? dgment of this Court in the case ofCOMMISSIONER OF INCOME TAX AND ANOTHER vs. M/s.INFOSYSTECHNOLOGIESLTD, in ITA No.422 of 2008and connected matters, disposed off on 02.06.2014, whereby the said substantial questions of law were answered in favour of the Revenue and against the assessee, subject to the result of the SLP filed by the assessee before the Hon’ble Supreme Court, as noted in the aforesaid judgment at page No.12. 3 Wether Rs. 29,87,75,000/- post sale customer support is an allowable deduction substantial question of law is concerned, in terms of the aforesaid order of this Court, the same is remanded to the Tribunal for a fresh consideration in terms of the direction issued in the earlier case of the assessee itself. 7. The substantial questions of law are accordingly answered.

Shanti Prime Publication Pvt. Ltd.

Section 37, 40, 80HHE, 195 of Income Tax Act, 1961—In the instant case, revenue raised question of law on following matters—
First two question pertain to disallowance u/s.40(a)(i) for non deduction of TDS u/s 195

Held that—The first and second substantial questions of law are covered by the judgment of this Court in the case of COMMISSIONER OF INCOME TAX AND ANOTHER vs. M/s. INFOSYS TECHNOLOGIES LTD, in ITA No.422 of 2008 and connected matters, disposed off on 02.06.2014, whereby the said substantial questions of law were answered in favor of the Revenue and against the assessee, subject to the result of the SLP filed by the assessee before the Hon’ble Supreme Court, as noted in the aforesaid judgment at page No.12.

Third question is concerned with allowability of post sale customer support—Held that—the same is remanded to the Tribunal for a fresh consideration in terms of the direction issued in the earlier case of the assessee itself.

The fourth question is concerned with computation of deduction u/s. 10A—Held that—The fourth substantial question of law is covered by the judgment of the Hon’ble Supreme Court in the case of COMMISSIONER OF INCOME TAX, CENTRAL-III vs. HCL TECHNOLOGIES LTD. reported in (2018) 93 Taxmann.com 33 (SC). Following the said judgment, the fourth substantial question of law is answered in favor of the assessee and against the Revenue.

The fifth question is concerned with computation of deduction u/s. 80HHE—Held that—The fifth substantial question of law is covered by the judgment of this Court in the case of COMMISSIONER OF INCOME TAX AND ANOTHER vs. M/s. INFOSYS TECHNOLOGIES LTD. in ITA No.422 of 2008 and connected matters, disposed off on 02.06.2014, Following the said judgment, the fifth substantial question of law is answered in favor of assessee and against the Revenue. [THE COMMISSIONER OF INCOME-TAX, BANGALORE. VERSUS M/S. INFOSYS TECHNOLOGIES LTD.,] [2018] [7] [ITCD Online] [85] [KARNATAKA HIGH COURT]