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

ITA 5508/MUM/2025Status: DisposedITAT Mumbai09 March 2026AY 2013-141 pages
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What did the Tribunal hold?

The Tribunal held that the payments for software were not 'royalty' under the DTAA or the Income Tax Act, as the assessee acquired only a license to use the software, not the copyright. Therefore, the assessee was not liable to deduct TDS under Section 195.

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 purchases. The assessee argued that these payments were for software as goods and not royalty.

What were the issues?

Whether payments for software purchased by an end-user from a foreign supplier constitute 'royalty' requiring TDS deduction under Section 195, considering the DTAA and domestic law.

Which sections of the Income-tax Act were involved?

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

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Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI SANDEEP GOSAIN & SHRI PRABHASH SHANKAR

For Appellant: Shri Nishant Thakkar/, Shri Hiten Thakkar
For Respondent: Shri Krishna Kumar (SR. DR.)
Hearing: 09.02.2026Pronounced: 09.03.2026

Per Sandeep Gosain, JM: The present appeals have been filed by the Revenue and cross objections by the assessee challenging the dif

The order continues below.

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