QUALCOMM INCORPORATED,HYDERABAD vs. DCIT, CIRCLE- 3(1)(1), INTL. TAXATION, NEW DELHI

ITA 7559/DEL/2018Status: DisposedITAT Delhi13 June 2023AY 2015-16100 pages
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What did the Tribunal hold?

The Tribunal held that the royalty income received by the assessee was not taxable in India. It reasoned that what was transferred was a limited right to use copyrighted material, not the copyright itself, and this did not constitute royalty income under the Act or the India-USA DTAA.

What were the facts?

The assessee, a US-based company, received royalty income from Original Equipment Manufacturers (OEMs) for the use of its patents related to wireless technologies. The Assessing Officer treated this income as taxable in India, arguing that the technology was used by end-users in India.

What were the issues?

Whether royalty income from licensing of patents for wireless technology embedded in products sold in India is taxable in India, and if such payments constitute royalty under the Income-tax Act and the DTAA.

Which sections of the Income-tax Act were involved?

Section 9(1)(vi)

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Cases cited in this judgment(8)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DLEHI

Before: SHRI G.S. PANNU & SHRI SAKTIJIT DEY

For Appellant: Ms. Jasmin Amalsadwala, Advocate
Hearing: 24.03.2023Pronounced: 13.06.2023

PER SAKTIJIT DEY, J.M.:

Captioned appeals have been filed by the assessee challenging the final assessment orders passed u/s. 143(3) read with section 144C(13)

of the Income-tax Act, 1961 pertaining to assessment years 2014-15

2 ITA Nos. 7894/Del/2017 & 7559/Del/2018 and SA Nos. 309 & 304/Del/2020

and 2015-16, in pursuance to the directions of learned Dispute

Resolution Penalty (DRP).

2.

The common issue arising in both the appeals relates to taxability

of royalty income received by the assess

The order continues below.

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