TDS liability cannot be imposed retrospectively based on subsequent Judgment

ACIT Vs Acer India Private Limited (ITAT Bangalore) Conclusion: No disallowance under section 40(a)(i) could be made as there could not be a retrospective obligation to deduct tax at source and therefore as on the date when assessee made payments to the non-resident for acquiring off-the-shelf software, could not be regarded as in the nature of royalty and therefore, there was no obligation on the part of assessee to deduct tax at source. Held: AO treated the purchases of computer software as payment in the nature of royalty. Since assessee did not deduct tax at source from the payments so mad...