ACIT COMPANY CIRCLE VI(1), CHENNAI vs. SAIPEM INDIA PROJECTS PRIVATE LIMITED, CHENNAI

ITA No.1210/Chny/2019 :- 41 -:

(a) All the appeals are allowed. (b) Impugned orders passed by the Income Tax Appellate Tribunal, Bangalore Bench, is hereby set aside. (c) The order passed by the Commissioner of Income Tax (Appeals) affirming the order passed by the Assistant Commissioner of Income tax, Circle 19(1), Bangalore, with modification is restored. (d) No costs.” Thus, as could be seen from aforesaid decision of Hon’ble Karnataka High

Court in the case of CiT v. Synopsis International Old Limited(supra) which

decision was rendered in context of Royalty as defined in India-Ireland

DTAA wherein definition of Royalty is paramateria to definition of Royalty

as used in India-Italy DTAA(except exclusion to aircraft in case of India-

Ireland DTAA as detailed above by us in this order by reproducing relevant

Article of both the treaties) with which we are seized of and Hon’ble

Karnataka High Court has held that grant of non-exclusive non

transferable license in computer software with no right to sub-lease or

transfer shall fall within Royalty both under DTAA as well u/s 9(1)(vi) of

the 1961 Act read with explanations and shall be chargeable to income-

tax under the provisions of the 1961 Act. Hon’ble jurisdictional High Court

has affirmed the ratio of decision of Hon’ble Karnataka High Court in the

case of Synopsis International Old Limited, in a recent judgment dated

23.04.2019 in the case of Zylog Systems Limited(supra). We are bound by

aforesaid decision of Hon’ble Jurisdictional High Court decision and

Respectfully following the decision of Hon’ble Madras High Court in the

case of Zylog, we allow appeal of Revenue. We order accordingly.

ITA No.1210/Chny/2019 :- 42 -:

Order pronounced on the 23rd day of December, 2019 in Chennai.

Sd/- Sd/- (एन.आर.एस. गणेशन) (र!मत कोचर) (N.R.S. GANESAN) (RAMIT KOCHAR) �या�यक सद�य/JUDICIAL MEMBER लेखा सद�य/ACCOUNTANT MEMBER चे�नई/Chennai, 0दनांक/Dated: 23rd December, 2019. TLN

आदेश क. +�त!ल1प अ2े1षत/Copy to: 4. आयकर आयु3त/CIT 1. अपीलाथ*/Appellant 5. 1वभागीय +�त�न�ध/DR 2. +,यथ*/Respondent 6. गाड' फाईल/GF 3. आयकर आयु3त (अपील)/CIT(A)