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ITA 113/2021 1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF APRIL, 2021 PRESENT
THE HON’BLE MR.JUSTICE SATISH CHANDRA SHARMA AND
THE HON’BLE MR. JUSTICE S.VISHWAJITH SHETTY
I.T.A.No.113/2021 BETWEEN: M/s. Ansys Software Private Limited, Rep. by its Director Sri B.Devakumar, Kabra Excelsior, # 6A, 7th Main, 1st Block, Koramangala, Bengaluru - 560 034, PAN: AADCA1658E
… APPELLANT
(By Sri A.Shankar, Sr. Counsel for Sri Lava.M., Adv.)
AND:
The Deputy Commissioner of Income Tax, Circle-11[1], Presently Circle - 1[1][1], BMTC Building, 80 Feet Road, 6th Block, Koramangala, Bengaluru - 560 095.
… RESPONDENT
(By Sri K.V.Aravind, Adv.)
ITA 113/2021 2
This Income Tax Appeal is filed under Section 260-A of the Income Tax Act, 1961, praying to set aside the order dated 29.11.2019 passed by the Income Tax Appellate Tribunal, Bengaluru, in ITA Nos.2897 and 2898/Bang/2019 dated 29.11.2019 for the assessment years 2005-06 and 2006-07 vide Annexure-A.
This appeal coming on for Admission, this day, Satish Chandra Sharma J., delivered the following:
JUDGMENT
Heard Sri K.V.Aravind on the question of admission.
This appeal is admitted on the following substantial question of law.
"Whether the Tribunal is justified in confirming the disallowance made under the provisions of Section 40[a][i] of the Act for the Assessment Years 2005-06 & 2006-07, by holding that the payments made by the appellant company to non-residents are in the nature of Royalty and the appellant is required to deduct TDS as per the provisions of Section 195 of the Act and failure to deduct TDS the provisions of Section 40[a][i] of the Act is attracted on the facts and circumstances of the case?"
ITA 113/2021 3
Heard the learned Counsel for the parties at length.
Learned Counsel for the assessee submitted that the issue involved in this appeal has been put to rest in view of the decision rendered by the Supreme Court in Civil Appeal Nos.8733-8734/2018 between ENGINEERING ANALYSIS CENTRE OF EXCELLENCE PRIVATE LIMITED VS THE COMMISSIONER OF INCOME-TAX & ANOTHER vide order dated 02.03.2021 and the issue involved in this appeal has been answered against the Revenue and in favour of the assessee.
For the reasons assigned in the aforesaid judgment rendered by the Supreme Court in Civil Appeal Nos.8733- 8734/2018 vide order dated 02.03.2021, the substantial questions of law involved in this appeal are answered in favour of the assessee and against the Revenue. In the result, the order dated 29.11.2019 passed by the Income Tax Appellate Tribunal is hereby quashed. In the result, the appeal is allowed.
ITA 113/2021 4
In respect of other questions of law, liberty is granted to the assessee to approach this Court again in case need arises in future.
Sd/- JUDGE
Sd/- JUDGE