PR. COMMISSIONER OF INCOME TAX vs. M/S INFORMATICA LLC
What did the High Court hold?
The High Court upheld the ITAT's decision, stating that if similar matters for the assessee's own case and other assessment years were decided similarly based on Supreme Court precedent, there was no reason for a different conclusion.
What were the facts?
The Revenue appealed against an ITAT order that held software sale receipts and ancillary support services were not taxable as royalty or FTS. The assessee argued the ITAT decision followed previous High Court and Supreme Court rulings.
What were the issues?
Whether receipts from software sales and ancillary support services are taxable as royalty or fees for technical services, following established judicial precedents.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
- 1 -
HC-KAR NC: 2025:KHC:39642-DB ITA No. 672 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH 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. 672 OF 2023
BETWEEN:
PR. COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION KORAMANGALA, BANGALORE
THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION, CIRCLE 1(2) KORAMANGALA, BANGALORE
…APPELLANTS
(BY SRI. E. I. SANMATHI, ADVOCATE)
Digitally signed by MADHUSHREE H Location: High Court of Karnataka
- 2 -
HC-KAR NC: 2025:KHC:39642-DB ITA No. 672 of 2023
AND:
M/S INFORMATICA LLC C/O INFORMATION BUSINESS SOLUTIONS PVT LTD, NO 66/1, BAGMANE COMMEZ 02, BAGMANE TECH PARK, C V RAMAN NAGAR, BANGALORE 560093
…RESPONDENT (BY MS. TANMAYEE RAJKUMAR., ADVOCATE)
THIS ITA/INCOME TAX APPEAL IS FIILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 05/08/2021 PASSED IN IT(TP)A NO.2867/BANG/2018, FOR THE ASSESSMENT YEAR 2015-2016 PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HONBLE COURT AS DEEMED FIT AND SET ASIDE THE APPELLATE ORDER DATED 05/08/2021 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, BENGALURU, AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEES CASE, IN APPEAL
- 3 -
HC-KAR NC: 2025:KHC:39642-DB ITA No. 672 of 2023
PROCEEDINGS NO. IT(TP)A NO.2867/BANG/2018 FOR A.Y.2015-2016 (Annexure-A).
THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: 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 has called in question the order dated 05.08.2021 in IT(TP)A No.2867/Bang/2018 on the file of the Income Tax Appellate Tribunal "A" Bench, Bengaluru [for short, 'the Tribunal']. The Tribunal has allowed the assessee's appeal relevant to the Assessment Year 2015-16 holding that the receipts of sale value of the software and provision of ancillary support services connected with such sale
- 4 -
HC-KAR NC: 2025:KHC:39642-DB ITA No. 672 of 2023
cannot be assessed as royalty/FTS income in the hands of the assessee.
Mr. E. I. Sanmathi, the learned Senior standing counsel for the Revenue, proposes to argue in support of the appeal relying upon the substantial questions of law proposed, but Ms. Tanmayee Rajkumar, the learned counsel for the assessee, submits that the Tribunal's decision is in the light of this Court's order in I.T.A. No.7/2019 relevant to the Assessment Year 2011-12 and that this decision is because of the Apex Court's decision in Engineering Analysis Centre for Excellence Private Limited Vs. Commissioner of Income Tax and Another reported in AIR 2021 SC 124.
This Court must observe that if in the assessee's own case for the other Assessment Year an opinion is rendered resulting in the final conclusion as aforesaid, there cannot be any reason for coming to another conclusion, especially when the factual
- 5 -
HC-KAR NC: 2025:KHC:39642-DB ITA No. 672 of 2023
matrix remains the same. As regards the review, it would suffice for this Court to observe that the Co-ordinate Benches of this Court have disposed of similar matters reserving no liberty. A reference in this regard could be made to the judgment of a Co-ordinate Bench of this Court in Income Tax Appeal No. 708/2023 decided on 12.08.2025. This Court does not find any reason to make an exception in reserving liberty.
Therefore, the appeal stands dismissed.
Sd/- (B M SHYAM PRASAD) JUDGE
Sd/- (T.M.NADAF) JUDGE
More judgments on Section 260-A
- Rijwan vs Income Tax OfficerITA/3/202023 Sept 2026
- Manoj Gupta vs Commissioner of Income Tax (Appeals)…ITA/243/202618 Sept 2026
- Rajesh Kumar Gupta vs Income Tax Officer, JammuITA/20/20142 Apr 2026
- Late Shri Gopaliyengar Madabushi Muralidhar vs The Income Tax OfficerITA/16/202526 Feb 2026
- Shri K. Samba Siva Rao ( HUF), Hyd vs I.T.O., HydITTA/181/20109 Feb 2026
Recent GST High Court judgments
Search GST case law →- Modern Engineers And Contractors vs. The Deputy Assistant Commissioner (St)Andhra Pradesh · 28 Oct 2026
- K Madhusudan Reddy vs. The State Of Andhra PradeshAndhra Pradesh · 28 Oct 2026
- Sandeep Ranjan Rout vs. The Commissioner Of CT And GST, Odisha, KatakOrissa · 28 Oct 2026
- Gagan Bihari Rout@Gagan Rout vs. State Of OdishaOrissa · 28 Oct 2026
- Biswanath Rana vs. The Commissioner, CT And GST, Odisha, CuttackOrissa · 28 Oct 2026