AMERICAN CHEMICAL SOCIETY,GURGAON vs. THE ASSTT. CIT (INTERNATIONAL TAXATION)-1(3)(2), MUMBAI

ITA 1520/MUM/2022Status: DisposedITAT Mumbai29 September 2022AY 2019-2015 pages
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What did the Tribunal hold?

The Tribunal held that the subscription charges received by ACS for access to its databases and publications do not constitute royalty income under the India-US DTAA or Section 9(1)(vi) of the Income Tax Act. The Tribunal followed its own previous decisions on similar facts for earlier assessment years.

What were the facts?

The American Chemical Society (ACS), a US-based organization, received subscription fees from Indian customers for access to its online chemistry databases (CAS division) and research journals (PUBS division). The Assessing Officer treated these receipts as royalty income taxable in India.

What were the issues?

Whether subscription charges for online databases and journals constitute royalty income taxable in India under the Income Tax Act and the India-US DTAA.

Which sections of the Income-tax Act were involved?

Section 9(1)(vi)

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Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI PRASHANT MAHARISHI & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Vishal Kalra, Shri S.S. Tomar
For Respondent: Shri S.H. Usmani

PER SANDEEP SINGH KARHAIL, J.M.

The present appeals have been filed by the assessee challenging separate final assessment orders of even date 20/04/2022, passed under section 143(3) r/w section 144C(13) of the Income Tax Act, 1961 (“the Act”) for the assessment year 2018–19 and 2019–20. 2. Since both the appeals pertain to the same assessee and issues involved are also, inter-alia, common, therefore these appeals were heard

American Chemical Society ITA Nos. 1521/Mum./2022 and 1520/Mum./2022

together as

The order continues below.

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