THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -1 vs. ALCALTEL LUCENT INTERNATIONAL

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ITA/260/2026HC DelhiDLHC01081996202227 March 2026Bench: HON'BLE MR. JUSTICE VINOD KUMAR,HON'BLE MR. JUSTICE DINESH MEHTA3 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court held that the issue was covered by the Supreme Court's judgment in Engineering Analysis Centre of Excellence Pvt. Ltd. Therefore, no substantial question of law arose for consideration.

What were the facts?

The appeals concerned whether income from software supplied with hardware or otherwise to Indian customers constituted royalty under the Income Tax Act and the India-France DTAA. The Revenue appealed the ITAT's decision.

What were the issues?

Whether income from software, whether embedded in hardware or supplied separately, is taxable as royalty under Indian tax law and the India-France DTAA.

Which sections of the Income-tax Act were involved?

Section 9(1)(vi)

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.

$~16, 17, 18, 21 & 22 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 259/2026 CM APPL. 19472/2026

COMMISSIONER OF INCOME TAX - INTERNATIONAL

TAXATION -1 .....Appellant Through: Mr. Ruchir Bhatia SSC with Mr. Anant Mann and Mr. Pratyaksh Gupta, JSCs.

versus

ALCATEL LUCENT FRANCE

.....Respondent Through: Mr. Kamal Sawhney, Mr. Puru Medhira, Mr. Arun Bhadauria, Advs. 17 + ITA 260/2026 CM APPL. 19475/2026

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL

TAXATION -1

.....Appellant Through: Mr. Ruchir Bhatia SSC with Mr. Anant Mann and Mr. Pratyaksh Gupta, JSCs.

versus

ALCALTEL LUCENT INTERNATIONAL .....Respondent Through: Mr. Kamal Sawhney, Mr. Puru Medhira, Mr. Arun Bhadauria, Advs. 18 + ITA 261/2026 CM APPL. 19493/2026

COMMISSIONER OF INCOME TAX - INTERNATIONAL

TAXATION -1 .....Appellant Through: Mr. Ruchir Bhatia SSC with Mr. Anant Mann and Mr. Pratyaksh Gupta, JSCs.

versus

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 30/03/2026 at 17:20:52

ALCATEL LUCENT INTERNATIOANL FRANCE .....Respondent Through: Mr. Kamal Sawhney, Mr. Puru Medhira, Mr. Arun Bhadauria, Advs. 21 + ITA 264/2026 CM APPL. 19502/2026

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL

TAXATION -1 .....Appellant Through: Mr. Ruchir Bhatia SSC with Mr. Anant Mann and Mr. Pratyaksh Gupta, JSCs.

versus

ALCALTEL LUCENT INTERNATIONAL .....Respondent Through: Mr. Kamal Sawhney, Mr. Puru Medhira, Mr. Arun Bhadauria, Advs. 22 + ITA 265/2026 CM APPL. 19503/2026

COMMISSIONER OF INCOME TAX - INTERNATIONAL

TAXATION -1

.....Appellant Through: Mr. Ruchir Bhatia SSC with Mr. Anant Mann and Mr. Pratyaksh Gupta, JSCs.

versus

ALCATEL LUCENT INTERNATIONAL FRANCE .....Respondent Through: Mr. Kamal Sawhney, Mr. Puru Medhira, Mr. Arun Bhadauria, Advs.

CORAM:

HON'BLE MR. JUSTICE DINESH MEHTA

HON'BLE MR. JUSTICE VINOD KUMAR

27.03.2026 O R D E R 1. The present batch of appeals has been filed under section 260A of the 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 30/03/2026 at 17:20:52

Income Tax Act, 1961 and following substantial question of law arises for our consideration: “Whether on the facts and in the circumstances of the case, the Ld. Income Tax Appellate Tribunal is correct in law in holding that the income from supply of software embedded in the hardware equipment or otherwise to customers in India does not amount to royalty under Section 9(1)(vi) of the Income Tax Act and under Article 12 of the Double Taxation Avoidance Agreement (DTAA) between India and France?” 2. The first proposed question is covered against the Revenue by virtue of the Supreme Court judgment in Engineering Analysis Centre of Excellence Pvt. Ltd. V. Commissioner of Income Tax and Anr reported in [2021]432 ITR 471 (SC). 3. Consequently, no substantial question of law arises in present batch of appeals. 4. Accordingly, the present appeals are dismissed.

DINESH MEHTA, J

VINOD KUMAR, J MARCH 27, 2026/dd 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 30/03/2026 at 17:20:52

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