SYNOPSYS INTERNATIONAL LTD vs. THE COMMISSIONER OF INCOME-TAX

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ITA/94/2013HC KarnatakaKAHC01015781201305 June 2013Bench: D.V.SHYLENDRA KUMAR,B.S.INDRAKALA4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court found that an identical substantial question of law had already been decided against the assessee by the same court in a previous case involving a sister concern. Therefore, the appeal was dismissed.

What were the facts?

The assessee, Synopsys International Ltd., appealed a High Court order confirming the ITAT's decision that payments received were 'royalty' under the DTAA and Indian Income Tax Act. This was for assessment year 2006-2007.

What were the issues?

Whether payments received by the appellant constituted 'royalty' under the DTAA and Explanation 2 to Section 9(1)(vi) of the Income-tax Act, making them chargeable to tax in India.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 9(1)(vi)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BANGALORE

DATED THIS THE 5TH DAY OF JUNE 2013 PRESENT

THE HON’BLE MR.JUSTICE D.V.SHYLENDRA KUMAR

AND

THE HON’BLE MRS.JUSTICE B.S.INDRAKALA

ITA.NO.94/2013

BETWEEN:

Synopsys International Ltd., Block 1, Blanchardstown Corporate Park Blanchardstown, Dublin 15 Ireland Represented by its Director Mr.Charles Watchorn.

… Appellant

(By Sri.T.Suryanarayana for M/s. King & Pattridge, Advs.)

AND:

1.

The Commissioner of Income-tax C.R.Building, Queens Road, Bangalore-560 001.

2.

The Deputy Director of

Income-Tax (International Taxation) Circle II(1) Bangalore.

… Respondents

(By Sri.K.V.Aravind, Adv. )

2 This ITA filed under Section 260-A of I.T.Act, 1961, arising out of order dated 31.10.2012 passed in ITA No.550/Bang/2011, for the assessment year 2006-2007, praying to formulate substantial question of law stated therein and to allow the appeal and set aside the order of the ITAT dated 31.10.2012 in ITA No.550/Bang/2011 to the extent questioned therein.

This ITA coming on for admission this day, the Court delivered the following:

J U D G M E N T

This appeal by the assessee under Section 260-A of the of the Income Tax Act, 1961, is directed against the order dated 31.10.2012 passed by the Income Tax Appellate Tribunal, Bangalore Bench, Bangalore in ITA.No.550/Bangalore/2011.

2.

The appellant has sought to raise the following substantial question of law viz., “whether, on the facts, in the circumstances and on the grounds urged, the Tribunal was justified in confirming the order passed by the CIT(A) and thereby the order passed by the 2nd respondent in holding that the payments received by the appellant was ‘royalty’ under Article 12 of the applicable DTAA, and as defined under Explanation 2 to Section 9 (1) (vi) of the

3 Income-tax Act, 1961, giving rise to an income chargeable to tax in India?”

3.

Sri.T.Suryanarayana, learned counsel for the appellant submits that the first question raised in the memorandum of appeal is not germane for examination as substantial question of law. Second question as framed in para 9.2 quoted above, does arise for examination in this appeal.

4.

However Sri. T.Suryanarayana, fairly submits that identical question had arisen in the case of sister concern of the assessee for the assessment years 2001-2002 and 2002-2003 and the question has been answered against the assessee by this Court as per the judgment dated 3.8.2010 passed in ITA.Nos.11 to 15 of 2008 and 17/2008.

5.

Learned standing counsel for the Department submits that it is so.

6.

Sri. T.Suryanarayana, however requests that the matter to be kept pending after admission to await the decision of the Supreme Court as in the earlier case, the assessee has taken the

4 matter to the Supreme Court by seeking special leave to appeal. Question having been already answered by this Court it is not necessary to keep this appeal pending.

7.

Accordingly, the appeal is dismissed answering the substantial question of law at para 9.2 quoted in the beginning of the order against the assessee.

SD/-

JUDGE

SD/- JUDGE

RS/*

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