CIT v. Samsung Electronics Ltd.

345 ITR 494High Court2012#153 most cited

What is CIT v. Samsung Electronics Ltd. authority for?

Payments by Indian residents to non-resident foreign software suppliers for software are considered royalty, constituting income deemed to accrue in India under section 9(1)(v), thereby requiring tax deduction at source under section 195.

461

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2012 to 2026.

Also referred to as

CIT v. Samsung Electronics Ltd. · section 9(1)(v) · section 9(1)(vi) · section 195 · computer software royalty · non-resident payments · deemed income India · tax deduction at source · foreign software suppliers · royalty income · software licensing

Sections most often in play

Section 9(1)(vi)Section 195Section 9(1)(vii)Section 40(a)(i)Section 13(4)Section 13(3)(a)Section 13(4)(c)Section 144C(5)
Read the full judgment

Issues it is cited on

section 9(1)(vi)computer softwaresection 9(1)section 195fees for technical servicespermanent establishmentsection 30non-residentdouble taxationsection 19transferperson

Judgments citing CIT v. Samsung Electronics Ltd.

M/S.Sandvik Tooling Sverige Ab, Pune vs. Deputy Commissioner of Income-Tax, (International Taxation) Circle - 2, Pune

In the result, the appeal is allowed

ITA 2523/PUN/2017[AAKCS4689N]Status: DisposedITAT Pune30 Aug 2019

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhuryआयकर अपील सं. / Ita No.2523/Pun/2017 िनधा"रण वष" / Assessment Year : 2014-15

Section 143(3)Section 9(1)(vi)

…e as ‘Royalty’ within the meaning of Article 12(3) to the DTAA between India and USA and hence accepted the assessee’s claim on the basis of the relevant DTAA. 5. Au contraire, the Hon’ble Karnataka High Court in CIT Vs. Samsung Electronics Co. Ltd. (2012) 345 ITR 494 (Kar.) has held that import of shrink wrapped software/off-the-shelf software from non-resident company under software licence agreement, whereby a licence is granted to the assessee for taking copy of the software, 5 M/s. Sandvik Tooling Sverige AB store the same in the hard disk of the designated computer and to take a back up copy while the…

Deputy Commssioner of Income-Tax, Pune vs. Igate Global Solutions Ltd., Pune

In the result, both the appeals are partly allowed

ITA 342/PUN/2014[2009-10]Status: DisposedITAT Pune26 Aug 2019AY 2009-10

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhuryआयकर अपील सं. / Ita. No.342/Pun/2014 िनधा"रण वष" / Assessment Year : 2009-10

Section 115JSection 195(2)Section 201(1)Section 40Section 9(1)(vi)

…approached the Hon’ble Supreme Court, which remitted the matter to the Hon’ble High Court for rendering a fresh decision. After considering all the aspects, the Hon’ble Karnataka High Court in the second round in CIT Vs. Samsung Electronics Co. Ltd. (2012) 345 ITR 494 (Kar.) has held that the assessee having imported shrink wrapped 6 and IT(TP) A.No.10/Bang/2014 software/off-the-shelf software from non-resident companies under software licence agreement whereby licence is granted to the assessee for taking copy of the software, store the same in the hard disk of the designated computer and to take a back u…

Synopsys International Ltd, Ireland vs. The Deputy Commisioner of Income Tax (International Taxation) Circle-2(1), Bangalore

In the result, the assessee’s appeal for Assessment Year 2012-13 is partly allowed

ITA 1565/BANG/2017[2012-13]Status: DisposedITAT Bangalore23 Jul 2019AY 2012-13

Bench: Shri N. V. Vasudevanand Shri Jason P Boazit(It)A No.1565/Bang/2017 Assessment Year : 2012-13 M/S. Synopsis International Ltd., Vs. Deputy Commissioner Of Block 1, Blanchardstown, Income Tax, Corporate Park, Blanchardstown, Circle - 2(1), International Taxation, Dublin 15, Ireland. Rastrothana Bhavan, 14/3, 6Th Floor, Nrupathunga Road, Bangalore – 560 001. Appellant Respondent Assessee By : Shri. T. Suryanarayana, Advocate Revenue By : Shri. C. H. Sundar Rao, Cit Date Of Hearing : 01.07.2019 Date Of Pronouncement : 23.07.2019 O R D E R

For Appellant: Shri. T. Suryanarayana, AdvocateFor Respondent: Shri. C. H. Sundar Rao, CIT
Section 143(3)Section 9(1)(vi)

…e for granting licences to Indian customers is Royalty in terms of the Act and DTAA and is exigible to tax in India. In coming to this view, the AO followed the decision of the Hon’ble Karnataka High Court in the case of CIT Vs. Samsung Electronics Co. Ltd., (345 ITR 494) (Kar) and the decision of the Co-ordinate Bench of this Tribunal it the assessee’s own case in ITA No.550/Bang/2011 for Assessment Year 2006-07 wherein it was held that when licence is granted to make use of software by making copy of the same, storing it in the hard disk of designated computer and to take back-up copy of software; then what is…

Amadeus Global Travel Distribution Sa, Spain vs. ADIT, New Delhi

The appeal of the assessee is allowed with above direction

ITA 1494/DEL/2011[2006-07]Status: DisposedITAT Delhi18 Jul 2019AY 2006-07

Bench: Shri Kuldip Singh & Shri Prashant Maharishiamadeus Global Travel Vs. Adit, Distribution Sa Circle-1(1), (Now Known As Amadeus It International Taxation, Group Sa), New Delhi Salvador De Madariaga, E- 28027, Madrid, Spain Pan: Aafca9629P (Appellant) (Respondent)

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri G. K. Dhall, CIT DR
Section 80HSection 9

…nt between India and the United States of America.‖ It may be pertinent to note that the Delhi High Court in the aforesaid decision has distinguished the ratio decidendi laid down by the Karnataka High Court in the case of CIT v. Samsung Electronics Co. Ltd.: 345 ITR 494. Accordingly, the reliance placed by the assessing officer on the decision of Samsung Electronics (supra) is misplaced. The Delhi High Court in the case of Ericsson AB v. DIT: 343 ITR 470 (Del), while interpreting the definition of royalty under India Sweden Treaty, held that grant of right to use a software had to be distinguished from the grant…

M/S. Sandvik Systems Development Ab, Pune vs. Deputy Commissioner of Income Tax, Pune

In the result, appeal of the Revenue is dismissed

ITA 190/PUN/2017[2010-11]Status: DisposedITAT Pune27 Jun 2019AY 2010-11

Bench: Ms. Sushma Chowla, Jm & Shri D. Karunakara Rao, Am आयकर अपील सं. / Ita No.190/Pun/2017 िनधा"रण वष" / Assessment Year : 2010-11 M/S. Sandvik Systems Development Ab, C/O. Sandvik Asia Private Limited, Mumbai-Pune Road, Dapodi, Pune-411012. अपीलाथ"/Appellant Pan : Aahcs7485H …. Vs. Dcit (International Taxation), …. ""थ" / Respondent Circle-2, Pune. Assessee By : Shri Nikhil Pathak Revenue By : Shri A. K. Modi सुनवाई क" तारीख / घोषणा क" तारीख / Date Of Hearing : 06.05.2019 Date Of Pronouncement: 27.06.2019 आदेश / Order Per D. Karunakara Rao, Am : This Appeal Is Filed By The Assessee Against The Order Of The Assessing Officer/Tpo/Drp For The Assessment Year 2010-11. 2. The Grounds Raised By The Assessee Are As Under :- “1. Ground 1: On The Facts & Circumstances Of The Case & In Law, The Learned Dispute Resolution Panel ('Ld. Drp’) Erred In Confirming The Action Of The Learned Assessing Officer (‘Ld.Ao’) In Reopening The Assessment Proceedings When The Assessee Had Disclosed Fully & Truly All The Material Facts Necessary For The Assessment. It Is Prayed That The Reopening Initiated Are Invalid & Void & Hence Be Quashed. 2. Ground 2: Without Prejudice To Ground 1 Above, On The Facts & Circumstances Of The Case & In Law, Ld. Drp Have Erred In Confirming The Action Of The Ld. Ao Of Taxing The Receipt For Providing User Access To Software Application Of Rs.

For Appellant: Shri Nikhil PathakFor Respondent: Shri A. K. Modi
Section 148Section 234BSection 9(1)(vi)

…आयकर अपीलीय अिधकरण, पुणे "यायपीठ “lh” पुणे म" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “C”, PUNE सु"ी सुषमा चावला, "याियक सद"य एवं "ी डी. क"णाकरा राव, लेखा सद"य के सम" BEFORE MS. SUSHMA CHOWLA, JM AND SHRI D. KARUNAKARA RAO, AM आयकर अपील सं. / ITA No.190/PUN/2017 िनधा"रण वष" / Assessment Year : 2010-11 M/s. Sandvik Systems Development AB, C/o. Sandvik Asia Private Limited, Mumbai-Pune Road, Dapodi, Pune-411012. अपीलाथ"/Appellant PAN : AAHCS7485H …. Vs. DCIT (International Taxation), …. ""थ" / Respondent Circle-2, Pune. Assessee by : Shri Nikhil Pathak Revenue by : Shri A. K. Modi सुनवाई क" तारीख / घोषणा क…

M/S Wipro Limited, Bangalore vs. The Assisstant Commissioner of Income Tax International Taxation Circle-2(1), Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 22/BANG/2017[2011-12]Status: DisposedITAT Bangalore21 Jun 2019AY 2011-12

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

M/S Wipro Limited, Bangalore vs. The Assisstant Commissioner of Income Tax International Taxation Circle-2(1), Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 21/BANG/2017[2010-11]Status: DisposedITAT Bangalore21 Jun 2019AY 2010-11

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

M/S Wipro Limited, Bangalore vs. The Assisstant Commissioner of Income Tax International Taxation Circle-2(1), Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 20/BANG/2017[2009-10]Status: DisposedITAT Bangalore21 Jun 2019AY 2009-10

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

M/S Wipro Limited, Bangalore vs. The Assisstant Commissioner of Income Tax International Taxation Circle-2(1), Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 19/BANG/2017[2008-09]Status: DisposedITAT Bangalore21 Jun 2019AY 2008-09

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

Deputy Commissioner of Income-Tax, Bangalore vs. M/S. Wipro Ltd, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 2339/BANG/2016[2012-13]Status: DisposedITAT Bangalore21 Jun 2019AY 2012-13

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

Deputy Commissioner of Income-Tax, Bangalore vs. M/S. Wipro Ltd, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 2338/BANG/2016[2011-12]Status: DisposedITAT Bangalore21 Jun 2019AY 2011-12

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

Deputy Commissioner of Income-Tax, Bangalore vs. M/S. Wipro Ltd, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 2337/BANG/2016[2010-11]Status: DisposedITAT Bangalore21 Jun 2019AY 2010-11

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

Deputy Commissioner of Income-Tax, Bangalore vs. M/S. Wipro Ltd, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 2336/BANG/2016[2009-10]Status: DisposedITAT Bangalore21 Jun 2019AY 2009-10

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

Deputy Commissioner of Income-Tax, Bangalore vs. M/S. Wipro Ltd, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 2335/BANG/2016[2008-09]Status: DisposedITAT Bangalore21 Jun 2019AY 2008-09

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

Deputy Commissioner of Income-Tax, Bangalore vs. M/S. Wipro Ltd, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 2328/BANG/2016[2007-08]Status: DisposedITAT Bangalore21 Jun 2019AY 2007-08

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

M/S Wipro Ltd, Bangalore vs. Additional Commissioner of Income Tax, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 1220/BANG/2014[2012-13]Status: DisposedITAT Bangalore21 Jun 2019AY 2012-13

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

M/S Wipro Ltd, Bangalore vs. Additional Commissioner of Income Tax, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 1219/BANG/2014[2011-12]Status: DisposedITAT Bangalore21 Jun 2019AY 2011-12

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

M/S Wipro Ltd, Bangalore vs. Additional Commissioner of Income Tax, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 1218/BANG/2014[2010-11]Status: DisposedITAT Bangalore21 Jun 2019AY 2010-11

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

M/S Wipro Ltd, Bangalore vs. Additional Commissioner of Income Tax, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 1217/BANG/2014[2009-10]Status: DisposedITAT Bangalore21 Jun 2019AY 2009-10

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…

M/S Wipro Ltd, Bangalore vs. Additional Commissioner of Income Tax, Bangalore

In the result, all 6 appeals filed by the revenue are dismissed

ITA 1216/BANG/2014[2008-09]Status: DisposedITAT Bangalore21 Jun 2019AY 2008-09

Bench: Shri A.K. Garodia & Shri Laliet Kumar

For Appellant: Shri K.R. Pradeep, CA
Section 201(1)Section 9(1)(vi)

…at the decisions rendered by the Tribunal were issued without considering the law laid down by the Hon’ble High Court in the matter of CIT v. Synopsis International Old Ltd. 212 Taxman 454 (Kar) and in the matter of CIT v. Samsung Electronics Co. Ltd. & Ors., 345 ITR 494 (Kar) whereby the High Court has consistently held that the payments made by the assessee for purchase of software was in the nature of royalty and hence, subject to deduction of tax and non-deduction of tax automatically invokes the rigors of section 201 for declaring the assessee as assessee in default. It was further submitted by the ld. DR th…