Assessee, who merely acted as dealer in sale of Microsoft products, not liable to deduct tax

High Court of Delhi CIT Vs. Dynamic Vertical Software India Pvt. Ltd. ITA No. 1692 of 2010 Decided on: 22 February 2011  Judgment 1. Although, two issues are raised in this appeal, the only issue which is pressed is the dis allowance of expenses incurred by the assessee under section 40(a)(i) of the Income Tax Act, on the ground that in the said expenses no tax at source was deducted. The Assessing Officer treated the payment made by the assessee to Microsoft as royalty and, therefore, came to the conclusion that tax at source was to be deducted thereupon and on failure to do so, the responde...