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03. The CIT (A), in his order confirmed the disallowance made by the AO, on the ground that the issue was considered by the Hon'ble jurisdictional High Court in the assessee's own case reported in 320 ITR 209, wherein the Hon'ble High Court held that tax was required to be withheld on payments for purchase of software. Further aggrieved the assessee is in appeal before us on the grounds mentioned herein above.

04. It was submitted by the ld. AR of the assessee that learned CIT (A) has followed the judgment of Hon'ble Karnataka High Court rendered in the case of CIT vs. Samsung Electronics Co. Ltd. as reported in 245 CTR 481. He submitted that by a later judgment of Hon'ble Karnataka High Court rendered in the case of WIPRO Ltd. vs. DCIT as reported in 382 ITR 179, similar issue was decided in favour of the assessee by following the earlier judgment of the same High ITA 595/Bang/2016 Page - 4 Court rendered in the case of the same assessee in ITA 507 of 2002 disallowance can be made u/s 40 (a) (i) of I. T. Act in respect of software imported which is in the nature of Royalty u/s 9 (1) (vi) of I. T. Act. He submitted a copy of both these judgments of Hon'ble Karnataka High Court. At this juncture, a query was raised by the bench as to whether the judgment of Hon'ble Karnataka High Court rendered in the case of CIT vs. Samsung Electronics Co. Ltd. (Supra) was brought to the notice of Hon'ble Karnataka High Court in the later case decided on 25.03.2015 because the judgment of Hon'ble Karnataka High Court rendered in the case of CIT vs. Samsung Electronics Co. Ltd. (Supra) is dated 15.10.2011. In reply, learned AR of the assessee submitted that the earlier judgment in the case of Wipro Ltd. (Supra) dated 25.08.2010 was also not brought to the notice of Hon'ble Karnataka High Court in the case of CIT vs. Samsung Electronics Co. Ltd. (Supra) decided on 15.10.2011 and therefore, the first judgment dated 25.08.2010 should be followed and this judgment is in favour of the assessee. In reply, learned DR of the revenue supported the order of CIT (A) and submitted that both the judgments in the case of Wipro Ltd. (Supra) are in the context of section 40 (a) (i) whereas the judgment of Hon'ble Karnataka High Court rendered in the case of CIT vs. Samsung Electronics Co. Ltd. (Supra) is in context of section 195 and in the present case also, the dispute is in context of section 195 and therefore, this judgment ITA ITA 595/Bang/2016 Page - 5 No. 1388/Bang/2013 rendered in the case of CIT vs. Samsung Electronics Co. Ltd. (Supra) should be followed.

05. The Ld. DR supported the orders of the lower authorities.

06. We have heard the rival submissions and perused the material on record. We find that the coordinate bench in the matter of Intertec Software Pvt. Ltd., vs ITO, dt.13.10.2017, wherein the author of this order was the co-author, after relying upon the judgment of the jurisdictional High Court in the matter of CIT (Intl.Taxn) v. Samsung Electronics Co. Ltd [(2011) 203 Taxman 477] and distinguishing the later judgment of the jurisdictional High Court in WIPRO Ltd. vs. DCIT as reported in 382 ITR 179, has held as under :

7. There is no dispute that the present issue is covered against the assessee by the judgment of Hon'ble Karnataka High Court rendered in the case of CIT vs. Samsung Electronics Co. Ltd. (Supra) and learned AR of the assessee has merely cited these two judgments rendered in the case of WIPRO Ltd. (Supra) and no other argument was made to the effect that this issue is not covered against the assessee by this judgment of Hon'ble Karnataka High Court rendered in the case of CIT vs. Samsung Electronics Co. Ltd. (Supra). Since, these two judgments cited by him are not applicable as per above discussion;

ITA 595/Bang/2016 Page - 7 Hon'ble Karnataka High Court rendered in the case of CIT vs. Samsung Electronics Co. Ltd. (Supra) and decline to interfere in the order of CIT (A).

Respectfully following the judgment of the Hon'ble jurisdictional High Court (supra) and that of the order of the coordinate bench (supra), on identical facts and circumstances, we uphold the orders of the lower authorities.

07. In the result, appeal of the assessee is dismissed.