DCIT-CIRCLE 1(3)(1), MUMBAI vs. DIEBOLD INDIA PRIVATE LIMITED, MUMBAI

ITA 5507/MUM/2025Status: DisposedITAT Mumbai09 March 2026AY 2012-13Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that payments for software purchased under End User License Agreements (EULAs) are not royalty, following the Supreme Court's decision in Engineering Analysis Centre of Excellence Pvt. Ltd. Therefore, the assessee was not required to deduct TDS.

What were the facts?

The Revenue appealed against the deletion of disallowance made under Section 40(a)(i) for non-deduction of TDS on payments for software purchased from a foreign entity. The assessee argued that these payments were not royalty.

What were the issues?

Whether payments for software purchased under EULAs constitute royalty for the purpose of TDS under Section 195 and attract disallowance under Section 40(a)(i).

Which sections of the Income-tax Act were involved?

Section 40(a)(i),Section 195,Section 9(1)(vi)

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Cases cited in this judgment(1)Show list

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Heard together (5 matters)

I.T.A. No. 5505/Mum/2025
I.T.A. No. 5506/Mum/2025
I.T.A. No. 5507/Mum/2025
I.T.A. No. 5508/Mum/2025
CO. No. 308/Mum/2025

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER A.Y: 2010-11 with I.T.A. No. 5506/Mum/2025 A.Y: 2011-12 with I.T.A. No. 5507/Mum/2025 A.Y: 2012-13 with I.T.A. No. 5508/Mum/2025 A.Y: 2013-14 DCIT- Circle 1(3)(1) Vs Diebold India Private Room No. 540, 5th Floor, . Limited Aayakar Bhavan, Rolta Tower-1, 5th Floor, Maharshi Karve Road, Plot No. 39, Central Road, Mumbai-400020 MIDC, Marol, Andheri(E), Mumbai-400093 PAN – AABCD6330N (Appellant) (Respondent) CO. No. 308/Mum/2025 (Arising out of ITA No. 5505/Mum/2025) A.Y: 2010-11 with CO. No. 309/Mum/2025 (Arising out of ITA No. 5506/Mum/2025) A.Y: 2011-12 with CO. No. 310/Mum/2025 (Arising out of ITA No. 5507/Mum/2025) A.Y: 2012-13 with CO. No. 311/Mum/2025 (Arising out of ITA No. 5508/Mum/2025) A.Y: 2013-14

Diebold India Private Limited

Diebold India Private Vs DCIT- Circle 1(3)(1) Limited . Room No. 540, 5th Floor, Rolta Tower-1, 5th Floor, Aayakar Bhavan, Maharshi Plot No. 39, Central Road, Karve Road, MIDC, Marol, Andheri(E), Mumbai-400020. Mumbai-400093 PAN – AABCD6330N (Appellant) (Respondent) Assessee by Shri

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