SERVIONT GLOBAL SOLUTIONS LIMITED,CHENNAI vs. DCIT CORPORATE CIRCLE 6(1), CHENNAI

In the result, appeal of the assessee is allowed

Bench: Shri Mahavir Singh & Shri Girish Agrawalassessment Year: 2011-12 Servoint Global Solutions Deputy Commissioner Of Limited Income Tax, Central Circle- No. 4/600 & 4/197, 7Th 6(1), Chennai. Vs. Street, Dr. Vsi Estate, Phase-Ii, Thiruvanmiyur, Chennai-600 041. Pan: Aaaci0947 F (Appellant) (Respondent) Present For: Appellant By : Shri S. P. Chidambaram, Ca Respondent By : Shri Chinthapalli Mehar Chand, Jcit Date Of Hearing : 24.05.2022 Date Of Pronouncement : 19.08.2022 O R D E R Per Girish Agrawal: This Appeal By The Assessee Is Directed Against The Order Of Ld. Cit(A)-16, Chennai Vide Ita No. 257/Cit(A)-15/2014-15 Dated 01.01.2019 Against The Order Of Ld. Dcit, Corporate Circle-6(1), Chennai Passed U/S 143(3) R.W.S. 92Ca(3) Of The Income-Tax Act,1961 (Hereinafter Referred To As The Act), Dated 23.02.2015 For Ay 2011-12. 2. The First Issue Involved In The Present Appeal Before Us Relates To Disallowance Of Payments Made Towards Purchase Of Software By The Assessee U/S. 40(A)(I) Of The Act Amounting To Rs.2,61,69,512/- For Non-Deduction Of Tax At Source U/S.195 Of The Act.

transfer amounts to income deemed to accrue or arise in India. The Assessing Officer held that since the Assessee has not deducted tax as required u/s.195 of the Act, therefore the provisions of Section 40(a)(i) are attracted to disallow the said payment. 4. During the course of assessment proceedings, Assessee submitted that the payment under reference