TDS not to be deducted on transaction of sale

Last updated: 11 April 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
At the very outset, the ld. counsel for the assessee contended that the AO passed order u/s.195(2) treating the assessee as in default by considering the price of the product as fees for technical services. He took us through the impugned order in which the ld. CIT(A) has overturned the action of the AO by relying on the view taken by him in appeal No.93/06- 07/07-08. The ld. counsel invited our attention towards the order passed by the Tribunal in the assessee’s own case by which Revenue’s appeal against such order, followed in the impugned order, came to be dismissed. Copy of the said order dated 20-08-2010 in ITA No.1462 & 1463/Mum/2009 [u/s.195(2] was placed on record. In this case, the Tribunal held that the correct nature of transactions is sale of product and not any fees for technical services requiring deduction of tax at source. It was also submitted that the facts and circumstances of the instant appeal are identical to those considered and decided by the Tribunal in the aforenoted order. The ld. DR candidly accepted the position so stated on behalf of the assessee

Citation :
R.No. 117, Scindia House, 1st floor,Ballard Estate, N.M. Road,Mumbai-400 038.Appellant Vs. M/s. Avaya Global Connect Ltd.,72, Kalpataru Synergy, Opp. Grant Hyatt, Vakola, Santacruz (E), Mumbai -400 055.PAN: AAACT3992M Respondent