{"id":64581,"date":"2026-09-11T14:57:56","date_gmt":"2026-09-11T09:27:56","guid":{"rendered":"https:\/\/itatonline.org\/digest\/lsl-holdings-private-limited-v-ito-int-taxmum-trib-www-itatonline-org\/"},"modified":"2026-09-11T14:57:56","modified_gmt":"2026-09-11T09:27:56","slug":"lsl-holdings-private-limited-v-ito-int-taxmum-trib-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/lsl-holdings-private-limited-v-ito-int-taxmum-trib-www-itatonline-org\/","title":{"rendered":"LSL Holdings Private Limited v. ITO (Int. Tax)(Mum.)(Trib.) [www.itatonline.org]"},"content":{"rendered":"<div>\n<p>The assessee acquired ownership rights in the trademark \u201cJamawar\u201d from Al Houda Hotels &amp; Tourism Co., Qatar, through Abu-Ghazaleh Intellectual Property (AGIP), for a lump-sum consideration of \u20b965.50 lakh. The Assessing Officer treated the remittance as \u201croyalty\u201d under section 9(1)(vi) and held the assessee to be in default under section 201(1) for failure to deduct tax under section 195, raising a demand of \u20b96,81,200 along with interest of \u20b93,61,036 under section 201(1A). The CIT(A) confirmed the action of the Assessing Officer. Before the Tribunal, the assessee furnished the trademark assignment agreement, evidence of ownership, details of the rights transferred, valuation and commercial terms of the transaction and the tax residency certificate of the recipient, and contended that the payment was for outright acquisition of a capital asset and not for use of the trademark. The Tribunal held that the assessee had furnished complete documentary evidence establishing acquisition of the trademark and that the payment was made for transfer of ownership for a lump-sum consideration. Relying, inter alia, on the decisions in <em data-start=\"1700\" data-end=\"1719\">Saregama (I) Ltd.<\/em> and <em data-start=\"1724\" data-end=\"1762\">GE India Technology Centre (P.) Ltd.<\/em>, the Tribunal held that a payment for outright purchase of a capital asset could not be treated as royalty and that the obligation under section 195 arises only when the remittance is chargeable to tax in India. Accordingly, the assessee could not be treated as an assessee-in-default and the demand raised under sections 201(1) and 201(1A) was deleted. The appeal was allowed. <strong><span data-content-reference-start=\"2141\" data-content-reference-end=\"2173\">(AY. 2019-20) (ITA No. 2619\/Mum\/2026 dt. 18-08-2026)<\/span><\/strong><b><\/b><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>S.195: Deduction of tax at source \u2013 Non-resident \u2013 Purchase of trademark \u2013 Assessee acquired absolute ownership of trademark \u201cJamawar\u201d from a non-resident for lump-sum consideration \u2013 Payment made for outright purchase of a capital asset and not for use of trademark \u2013 Consideration for transfer of ownership of trademark taxable, if at all, under the head \u201cCapital gains\u201d and not as \u201croyalty\u201d \u2013 Assessee not liable to deduct tax at source under section 195 \u2013 Demand under sections 201(1) and 201(1A) deleted. [S.5(2), 9(1)(vi), 201(1), 201(1A).]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64581","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gND","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64581"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64581\/revisions"}],"predecessor-version":[{"id":64582,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64581\/revisions\/64582"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}