Payment for bandwidth charge utilization was royalty & TDS applicable

CIT Vs Infosys Technologies Ltd. (Karnataka High Court)

Payment for bandwidth charge utilization was royalty and TDS was required to be deducted under section 195 of Income Tax Act, 1961 and on failure to deduct TDS, the disallowance under section 40(a)(i) was rightly made by the Assessing Officer.

FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT

Heard.

2. The appeal was admitted for consideration of the following substantial questions of law :–

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