VERITAS STORAGE (SINGAPORE) PTE. LTD,SINGAPORE vs. DCIT, CIRCLE 3(1)(1), INTERNATIONAL TAXATION, NEW DELHI

ITA 1913/DEL/2023Status: DisposedITAT Delhi22 August 2025AY 2020-21Bench: SHRI VIJAY PAL RAO, VICE PRESIDENT, SHRI NAVEEN CHANDRA (Accountant Member)13 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the income from maintenance support and training services are intricately linked with the utilization of software and are not taxable as FTS. They also found that the 'make available' condition under Article 12(4)(b) of the DTAA was not satisfied, and the revenue did not provide sufficient evidence to demonstrate otherwise. The Tribunal relied on its previous decision in the assessee's own case.

What were the facts?

The assessee, a Singapore tax resident, received income from software licenses, hardware appliances, maintenance support, training services, and education services, which it claimed as non-taxable under the India-Singapore DTAA. The Assessing Officer (AO) proposed to treat a portion of this income as Fees for Technical Services (FTS), while the Dispute Resolution Panel (DRP) partially agreed, considering some services as FTS. The assessee appealed this decision.

What were the issues?

Whether income from maintenance support and training services, provided in connection with software utilization, is taxable as Fees for Technical Services (FTS) under the India-Singapore DTAA, and if the 'make available' clause is satisfied.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 9(1)(vii),Section 115A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DELHI ‘D’ BENCH,

Before: SHRI VIJAY PAL RAO, & SHRI NAVEEN CHANDRA

For Appellant: Shri Tarun Gulati, Sr. Adv, Shri Nikhil Gupta, Adv, Shri Prince Nagpal, Adv, Shri Rachit Abhishek, Adv
For Respondent: Shri Vedanshu Tripathi, CIT- DR
Hearing: 29.05.2025Pronounced: 22.08.2025

PER NAVEEN CHANDRA, AM :-

This appeal by the assessee is directed against the order dated

29.04.

2023 u/s 143(3) r.w.s 144C(13) of the Income-tax Act, 1961 [the Act, for short] for A.Y 2020-21. ITA No. 1913/DEL/2023 [A.Y 2020-21] Veritas Storage [Singapore] Pte Ltd Vs. The Dy. C.I.T.

2.

The grievance of the assessee as emanating from the grounds of appeal is as under:

Ground 1-The Learned AO violates the Principle of Consistency and Judicial Discipline.

1.

1 The learned AO grossly erred in re-characterizing the transaction in relati

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 144C(13)

All 3,426 judgments and leading authorities on Section 144C(13) →

Recent GST High Court judgments

Search GST case law →