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The appeal filed by assessee is against order of CIT(A)-13, Pune, dated 25.06.2015 relating to assessment year 2010-11 against order passed under section 143(3) of the Income-tax Act, 1961 (in short 'the Act').

2. The assessee has raised the following ground of appeal:-

Opus Software Solutions Pvt. Ltd.

1) On the facts and in the circumstances of the case and in law the learned CIT(A) erred in confirming the disallowance of expenditure Rs.32,35,518/- by the Dy. Commissioner of Income tax Circle 3, Pune without appreciating the facts of the case and prevailing law. The appellant hereby prays your honour that the claim of expenditure may be allowed.

Opus Software Solutions Pvt. Ltd.

6. The assessee is in appeal against the order of CIT(A).

7. The learned Authorized Representative for the assessee pointed out that the issue stands covered by the ratio laid down by Pune Bench of Tribunal in John Deere India Pvt. Ltd. Vs. DDIT (IT) (2019) 70 ITR (Trib) 73 (Pune). He also pointed out that definition of 'royalty' under India and New Zealand Treaty was same as under the DTAA between India and USA. He referred to the definition of 'royalty' under both the DTAAs.

8. The learned Departmental Representative for the Revenue placed reliance on the orders of authorities below.

9. We have heard the rival contentions and perused the record. The issue which arises in the present appeal is whether the deduction claimed by assessee on purchase of licensed software is to be allowed as deduction in the hands of assessee or not. The Revenue authorities were of the view that purchase of licensed software by the assessee is akin to royalty and the assessee was duty bound to deduct tax at source. Since the assessee has failed to deduct tax at source, expenditure was disallowed in the hands of assessee. In this regard, the CIT(A) had placed reliance on the ratio laid down by Pune Bench of Tribunal in the case of Cummins Inc (supra) and Mumbai Bench of Tribunal in DDIT Vs. Reliance Infocom (supra). The case of assessee on the other hand, before us is that the issue now stands covered by latest decision of Pune Bench of Tribunal in John Deere India Pvt. Ltd. Vs. DDIT (supra). The Tribunal while deciding the issue of deduction of tax at source out Opus Software Solutions Pvt. Ltd.

10. In the entirety of the above said facts and circumstances, we find no merit in the orders of authorities below in having held the assessee to be in default for non deduction of tax at source out of aforesaid payments. We reverse the order of CIT(A) in this regard and direct the Assessing Officer to Opus Software Solutions Pvt. Ltd.

allow the claim of expenditure of ₹ 32,35,518/-. The ground of appeal raised by assessee is thus, allowed.