CIT v. Samsung Electronics Ltd.

DCIT-Circle 1(3)(1), Mumbai vs. Diebold India Private Limited, Mumbai

Bench: Shri Sandeep Gosain & Shri Prabhash Shankarι.Τ.Α. Νο. 5505/Mum/2025 Α.Υ: 2010-11 With Ι.Τ.Α. Νο. 5506/Mum/2025 A.Y: 2011-12 With Ι.Τ.Α. Νο. 5507/Mum/2025 Α.Υ: 2012-13 With Ι.Τ.Α. Νο. 5508/Mum/2025 Dcit- Circle 1(3)(1) A.Y: 2013-14 Room No. 540, 5Th Floor, Aayakar Bhavan, Maharshi Karve Road, Mumbai-400020 Vs Diebold India Private Limited Rolta Tower-1, 5Th Floor, Plot No. 39, Central Road, Midc, Marol, Andheri(E), Mumbai-400093 Pan – Aabcd633Ον (Appellant) (Respondent) Co. No. 308/Mum/2025 (Arising Out Of Ita No. 5505/Mum/2025) Α.Υ: 2010-11 With Co. No. 309/Mum/2025 (Arising Out Of Ita No. 5506/Mum/2025) A.Y: 2011-12 With Co. No. 310/Mum/2025 (Arising Out Of Ita No. 5507/Mum/2025) A.Y: 2012-13 With Co. No. 311/Mum/2025 (Arising Out Of Ita No. 5508/Mum/2025) A.Y: 2013-14 Diebold India Private Limited Assessee By Shri Nishant Thakkar/ Shri Hiten Thakkar Revenue By Shri Krishna Kumar (Sr. Dr.) Date Of Hearing 09.02.2026 Date Of Pronouncement 09.03.2026 Order Per Sandeep Gosain, Jm: The Present Appeals Have Been Filed By The Revenue & Cross Objections By The Assessee Challenging The Different Impugned Orders Dt. 03.06.2025, 04.06.2025, 04.06.2025 & 04.06.2025 Passed Under Section 250 Of The Income Tax Act, 1961 ('The Act'), By The National Faceless Appeal Centre (Nfac) / Cit(A) For The Assessment Years 2010-11, 2011-12, 2012-13 & 2013-14. 2. Since All The Issues Involved In These Appeals & Cross Objections Is Common & Identical & Belongs To One Assessee Therefore, They Have Been Clubbed, Heard Together & Consolidated Order Is Being Passed. Firstly, We Shall Take Ita No. 5505/Mum/2025, A.Y 2010-11 As Lead Case & Facts Narrated Therein.

…s not required to deduct tax u/s 195 of the Act for payment for purchase of software products from Diebold Inc. ignoring the judgement of the Hon'ble High Court of Karnataka in the case of CIT, International Taxation vs. Samsung Electronics Co. Limited [2012] 345 ITR 494 WHARE Hon'ble Court held that right to use software for internal business as per terms & conditions of Agreement and payment made in that regard would constitute 'royalty' as per Sec.9(1)(vi) read with Article 12 of DTAA between India and USA.? 4. Whether on the facts and circumstances of the case and in law, Ld. CIT(A) was justified in deleting…

DCIT-Circle 1(3)(1), Mumbai vs. Diebold India Private Limited, Mumbai

In the result, the appeal filed by the Revenue is dismissed

Bench: Shri Sandeep Gosain & Shri Prabhash Shankar

…s 195 of the Act for payment for purchase of software products from Diebold Inc. ignoring the judgement of the Hon'ble High Court of Karnataka in the case of CIT, International Taxation vs. Samsung Electronics Diebold India Private Limited Co. Limited [2012] 345 ITR 494 WHARE Hon'ble Court held that right to use software for internal business as per terms & conditions of Agreement and payment made in that regard would constitute 'royalty' as per Sec.9(1)(vi) read with Article 12 of DTAA between India and USA.? 4. Whether on the facts and circumstances of the case and in law, Ld. CIT(A) was justified in deleting…

DCIT-Circle 1(3)(1), Mumbai vs. Diebold India Private Limited, Mumbai

…195 of the Act for payment for purchase of software products from Diebold Inc. ignoring the judgement of the Hon'ble High Court of Karnataka in the case of CIT, International Taxation vs. Samsung Electronics 3 Diebold India Private Limited Co. Limited [2012] 345 ITR 494 WHARE Hon'ble Court held that right to use software for internal business as per terms & conditions of Agreement and payment made in that regard would constitute 'royalty' as per Sec.9(1)(vi) read with Article 12 of DTAA between India and USA.? 4. Whether on the facts and circumstances of the case and in law, Ld. CIT(A) was justified in deleting…

DCIT-Circle 1(3)(1), Mumbai vs. Diebold India Private Limited, Mumbai

…195 of the Act for payment for purchase of software products from Diebold Inc. ignoring the judgement of the Hon'ble High Court of Karnataka in the case of CIT, International Taxation vs. Samsung Electronics 3 Diebold India Private Limited Co. Limited [2012] 345 ITR 494 WHARE Hon'ble Court held that right to use software for internal business as per terms & conditions of Agreement and payment made in that regard would constitute 'royalty' as per Sec.9(1)(vi) read with Article 12 of DTAA between India and USA.? 4. Whether on the facts and circumstances of the case and in law, Ld. CIT(A) was justified in deleting…

Assistant Commissioner of Income Tax (I.T) -3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited, Mumbai

In the result all appeals filed by the revenue stands dismissed

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…nsidered the issue by both sides in light of records placed before us. We note that observing as under:- "3. One group of appeals arises from a common judgment reported as CIT of the High Court of Karnataka dated 15-10-2011 Samsung Electronics Co. Lal. (2012) 345 ITR 494. by posed before the High Court, was answered stating that the amounts paid by in India to non-resident, foreign software suppliers, amounted which the question which Was the concerned persons resident to royalty and as this was so, the same constituted taxable income deemed to accrue in India under section 9(1)(v) of the Income-tax Act, 1961 ["I…

Assistant Commissioner of Income Tax (I.T) -3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited, Mumbai

In the result all appeals filed by the revenue stands dismissed

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…nsidered the issue by both sides in light of records placed before us. We note that observing as under:- "3. One group of appeals arises from a common judgment reported as CIT of the High Court of Karnataka dated 15-10-2011 Samsung Electronics Co. Lal. (2012) 345 ITR 494. by posed before the High Court, was answered stating that the amounts paid by in India to non-resident, foreign software suppliers, amounted which the question which Was the concerned persons resident to royalty and as this was so, the same constituted taxable income deemed to accrue in India under section 9(1)(v) of the Income-tax Act, 1961 ["I…

Assistant Commissioner of Income Tax (I.T) -3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited, Mumbai

In the result all appeals filed by the revenue stands dismissed

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…nsidered the issue by both sides in light of records placed before us. We note that observing as under:- "3. One group of appeals arises from a common judgment reported as CIT of the High Court of Karnataka dated 15-10-2011 Samsung Electronics Co. Lal. (2012) 345 ITR 494. by posed before the High Court, was answered stating that the amounts paid by in India to non-resident, foreign software suppliers, amounted which the question which Was the concerned persons resident to royalty and as this was so, the same constituted taxable income deemed to accrue in India under section 9(1)(v) of the Income-tax Act, 1961 ["I…

Assistant Commissioner of Income Tax (I.T) -3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited, Mumbai

In the result all appeals filed by the revenue stands dismissed

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…nsidered the issue by both sides in light of records placed before us. We note that observing as under:- "3. One group of appeals arises from a common judgment reported as CIT of the High Court of Karnataka dated 15-10-2011 Samsung Electronics Co. Lal. (2012) 345 ITR 494. by posed before the High Court, was answered stating that the amounts paid by in India to non-resident, foreign software suppliers, amounted which the question which Was the concerned persons resident to royalty and as this was so, the same constituted taxable income deemed to accrue in India under section 9(1)(v) of the Income-tax Act, 1961 ["I…

DCIT (International Taxation)-3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited, Mumbai

In the result all appeals filed by the revenue stands dismissed

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…nsidered the issue by both sides in light of records placed before us. We note that observing as under:- "3. One group of appeals arises from a common judgment reported as CIT of the High Court of Karnataka dated 15-10-2011 Samsung Electronics Co. Lal. (2012) 345 ITR 494. by posed before the High Court, was answered stating that the amounts paid by in India to non-resident, foreign software suppliers, amounted which the question which Was the concerned persons resident to royalty and as this was so, the same constituted taxable income deemed to accrue in India under section 9(1)(v) of the Income-tax Act, 1961 ["I…

DCIT (International Taxation) 3(2)(2), Mumbai vs. M/S. Mott Macdonald Limited., Mumbai

In the result all appeals filed by the revenue stands dismissed

Bench: Smt. Beena Pillai () & Ms. Padmavathy S ()

…nsidered the issue by both sides in light of records placed before us. We note that observing as under:- "3. One group of appeals arises from a common judgment reported as CIT of the High Court of Karnataka dated 15-10-2011 Samsung Electronics Co. Lal. (2012) 345 ITR 494. by posed before the High Court, was answered stating that the amounts paid by in India to non-resident, foreign software suppliers, amounted which the question which Was the concerned persons resident to royalty and as this was so, the same constituted taxable income deemed to accrue in India under section 9(1)(v) of the Income-tax Act, 1961 ["I…

DDIT (It) 2(1), Mumbai vs. Siemens Ag, Mumbai

…ervations have not been upheld by the Tribunal in assessee's own case for A.Y. 2001-02 to 2006- 07. 8. Ld. DRP upheld the action of the ld. AO relying upon the judgment of the Hon'ble Karnataka High Court in the case of CIT vs. Samsung Electronics reported in 345 ITR 494 (KAR). 6 ITA No.2153/Mum/2014 & 2179/Mum/2014 Siemens Sktiengesellshaft However, the ld. DRP directed the ld. AO to tax the impugned software transactions as 'royalty' only with respect to three invoices where software was independently supplied and not other transactions. The ld. AO in his final assessment order had failed to comply with the spe…

Siemens Aktiengesellschaft, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, appeal of the assessee is allowed and appeal of the Revenue is dismissed

Bench: SHRI B R BASKARAN (Accountant Member), SHRI AMIT SHUKLA (Judicial Member)

…ervations have not been upheld by the Tribunal in assessee’s own case for A.Y. 2001-02 to 2006- 07. 8. Ld. DRP upheld the action of the ld. AO relying upon the judgment of the Hon’ble Karnataka High Court in the case of CIT vs. Samsung Electronics reported in 345 ITR 494 (KAR). However, the ld. DRP directed the ld. AO to tax the impugned software transactions as ‘royalty’ only with respect to three invoices where software was independently supplied and not other transactions. The ld. AO in his final assessment order had failed to comply with the specific directions of the ld. DRP and has taxed the entire consider…