PR. COMMISSIONER OF INCOME TAX vs. BLUE YONDER INC

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ITA/119/2024HC KarnatakaKAHC01017792202429 October 2025Bench: B M SHYAM PRASAD,T.M.NADAF4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the decision of the Apex Court in Engineering Analysis Centre of Excellence Private Limited would apply to the sale of software as well. Consequently, the appeal was dismissed.

What were the facts?

The dispute was whether receipts from the sale of software and associated services constituted 'Royalty' under the Income Tax Act. The High Court had previously ruled on the services aspect, and the current appeal concerned the sale of software.

What were the issues?

The primary issue was the classification of receipts from software sales as 'Royalty' under the Income Tax Act, considering the precedent set by the Supreme Court.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2025:KHC:43158-DB ITA No. 119 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF OCTOBER, 2025 PRESENT THE HON'BLE MR. JUSTICE B M SHYAM PRASAD AND THE HON'BLE MR. JUSTICE T.M.NADAF INCOME TAX APPEAL NO. 119 OF 2024

BETWEEN:

1.

PR. COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) KORAMANGALA, BENGALORE

2.

THE ASSISTANT COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION, CIRCLE 1(2) KORMANGALA, BANGALORE

…APPELLANTS (BY SRI. SUSHAL TIWARI, ADVOCATE FOR SRI. E.I.SANMATHI, ADVOCATE)

Digitally signed by MADHUSHREE H Location: High Court of Karnataka

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HC-KAR NC: 2025:KHC:43158-DB ITA No. 119 of 2024

AND:

BLUE YONDER INC (FORMERLY KNOWN AS JDA SOFTWARE INC.) C/O BLUE YONDER INDIA PVT LTD TOWER A MANTRI COMMERCIALS DEVARABEESANAHALLI OUTER RING ROAD, VARTHUR HOBLI, BENGALURU - 103. REP BY ITS DIRECTOR

…RESPONDENT

(BY MS. TANMAYEE RAJKUMAR, ADVOCATE)

THIS ITA/INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 03.01.2024 PASSED IN IT(IT)A NO. 424/BANG/2023 FOR THE ASSESSMENT YEAR 2019-20.

THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

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HC-KAR NC: 2025:KHC:43158-DB ITA No. 119 of 2024

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD and HON'BLE MR. JUSTICE T.M.NADAF

ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE B M SHYAM PRASAD)

The Revenue and the assessee have been in dispute on whether the receipts by the assessee for sale of software and services associated with such software would be "Royalty". The dispute as regards the latter being "Royalty" stands concluded with this Court's order dated 08.10.2025 in ITA No.120/2024 in view of the decision of the Apex Court in Engineering Analysis Centre of Excellence Private Limited Vs. Commissioner of Income Tax and Another reported in AIR 2021 SC 124.

The dispute in the present case relates to the sale of software and it is undisputed that the decision

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HC-KAR NC: 2025:KHC:43158-DB ITA No. 119 of 2024

of the Apex Court in Engineering Analysis Centre of Excellence Private Limited [supra] would apply to the present case as well. As such, this appeal also stands dismissed.

Sd/- (B M SHYAM PRASAD) JUDGE

Sd/- (T.M.NADAF) JUDGE

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