THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 vs. SALESFORCE.COM SINGAPORE PTE. LTD.

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ITA - 144 / 2023HC Delhi14 March 20232 pages
For Petitioner: RUCHIR BHATIA
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the issue appears to be covered by the Supreme Court's decision in Engineering Analysis Centre of Excellence (P.) Ltd. The Revenue's counsel stated they would examine the facts in a similar prior case where the Revenue had conceded the issue.

What were the facts?

The appeals concern whether subscription fees received by Salesforce.com Singapore Pte. Ltd. constitute royalty under Indian tax law and the India-Singapore DTAA for AY 2011-12 to 2017-18. The Revenue contended it was royalty, while the assessee argued otherwise.

What were the issues?

The primary issue is whether subscription fees for software constitute royalty under the Income Tax Act and the India-Singapore DTAA. The applicability of the Supreme Court's ruling in Engineering Analysis Centre of Excellence to the present case is also a key consideration.

Which sections of the Income-tax Act were involved?

Section 9(1)(vi)(b), Article 12(3)(b)

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.

$~23 to 29 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 144/2023 + ITA 145/2023& CM Appl.11869/2023 + ITA 146/2023& CM Appl.11873/2023 + ITA 147/2023& CM Appl.11878/2023 + ITA 148/2023& CM Appl.11879/2023 + ITA 149/2023& CM Appl.11881/2023 + ITA 150/2023& CM Appl.11885/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION-3

..... Appellant Through: Mr Ruchir Bhatia, Sr Standing Counsel.

versus

SALESFORCE.COM SINGAPORE PTE. LTD. ..... Respondent Through: Mr Vishal Kalra with Ms Rajnandini Shukla, Advs.

CORAM:

HON'BLE MR. JUSTICE RAJIV SHAKDHER

HON'BLE MS. JUSTICE TARA VITASTA GANJU

O R D E R %

14.03.2023 [Physical Hearing/Hybrid Hearing (as per request)] 1. These appeals concern Assessment Year (AY) 2011-12 to 2017-18. 2. The short issue which arises for consideration is: whether subscription fee received by the respondent/assessee is royalty, as contended by the appellant/revenue, in terms of Section 9(1)(vi)(b) and/or under Article 12(3)(b) of the India-Singapore DTAA.

ITA 144/2023 and connected matters

Page 1 of 2 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:44:21

3.

Mr Vishal Kalra, who appears on advance notice, says that prima facie, the issue seems to be covered by the Supreme Court in the case of Engineering Analysis Centre of Excellence (P.) Ltd. Vs. CIT, 432 ITR 471 (SC). 4. Mr Kalra informs us, that in another matter raising a similar issue i.e., ITA 86/2023, which was disposed of on 15.02.2023, the appellant/revenue had, in fact, conceded that the issue is covered by the aforementioned judgment of the Supreme Court. 5. Mr Bhatia says, that he will examine the facts obtaining in ITA No.86/2023. 6. List the matters on 15.03.2023.

RAJIV SHAKDHER, J

TARA VITASTA GANJU, J

MARCH 14, 2023/pmc

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ITA 144/2023 and connected matters

Page 2 of 2 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 12:44:21

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