The tribunal held that where assessee had not deducted tax on payment for purchase of software as the financial year in question fell prior to date of decision of the Karnataka High Court in the case of CIT v. Samsung electronics co. Ltd. (2012) 345 ITR 494 (Karn) (HC) holding tax was deductible at source, no disallowance for earlier year based on subsequent development of law was called for. (AY 2011-12).
Infosys Bpm Ltd. v. Dy.CIT (2021) 87 ITR 193 (Bang.)(Trib.)
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-payment for purchase of software without deducting TDS-Not affected by subsequent court ruling-No disallowance can be made for failure to deduct tax at source. [S. 9(1)(vi), 194I, 195]