No Penalty on remittance without deduction of tax on the basis of CA Certificate

ADIT Vs. Tata Communications Ltd. (ITAT Mumbai) (2010-TII-157-ITAT-MUM-INTL)] Brief :Once the payment of ‘off-the shelf software’ held not to be chargeable to tax as a royalty on the basis of the certificate obtained from a chartered accountant, no penalty and interest can be levied on the grounds that the assessee did not take prior approval of the assessing officer under section 195(2) of the Act. Facts: Tata Communications Ltd. (‘the assessee’) had made payment for ‘off-the shelf software’ to a company resident in USA without deducting tax at source on the basis of a certificate...