COMMISSIONER OF INCOME TAX Vs. CREATIVE INFOCITY LTD

JUDGEMENT

(1.) Feeling aggrieved and dissatisfied with the impugned judgment and order dated 21.09.2016 passed by the learned Income Tax Appellate Tribunal, Ahmedabad (hereinafter referred to as the "ITAT") passed in ITA No.4124/AHD/2008 for AY 200405, by which, the learned ITAT has dismissed the said appeal preferred by the Revenue, the Revenue has preferred present appeal with the following proposed question of law: A. Whether Hon'ble ITAT has erred in facts and in law in holding that the payment made towards supply of design and drawings to a nonresident architect firm was outright purchase and not taxable as royalty or FTS under section 9(1) of the Income Tax Act, 1961 ? B. Whether Hon'ble ITAT has erred in facts and in law in holding the payment to a nonresident for marketing activity as reimbursement of expenses especially when expenses were part and parcel of technical service related to income earned in India ?

(2.) The facts leading to the present Appeal in nutshell are as under:

(3.) Shri Nitin Mehta, learned counsel has appeared on behalf of the revenue and Shri Tushar Hemani, learned counsel has appeared on behalf of the assessee.