Engineering Analysis Centre of Excellence (P) Ltd. v. CIT

432 ITR 471Supreme Court of India2021#50 most cited

What is Engineering Analysis Centre of Excellence (P) Ltd. v. CIT authority for?

Payments for the supply or use of computer software, where there is no transfer of copyright but only a right to use the copyrighted product, are generally considered business profits and not 'royalty' or 'fees for technical services' under the Income Tax Act, 1961 or relevant DTAAs. This principle also applies to transponder fees, which are not taxable as royalty.

914

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

Engineering Analysis Centre of Excellence · computer software royalty · section 9(1)(vi) · DTAA · fees for technical services · copyright transfer · copyrighted article · withholding tax · business profits · section 195 · transponder fees · taxability in India

Also reported as

125 Taxmann.com 42281 Taxmann 19

Sections most often in play

Section 143(3)Section 1961Section 9(1)(vi)Section 234BSection 195Section 90Section 144C(13)Section 9(1)(vii)
Read the full judgment

Issues it is cited on

copyrighted articlesection 14(a)section 9(1)(vi)make available clausecomputer softwaresection 195(2)section 90(2)royalty incomewithholding taxforeign tax creditfees for included servicestax treaty

Judgments citing Engineering Analysis Centre of Excellence (P) Ltd. v. CIT

DCIT, Circle-3(1)(1) Int. Taxation, New Delhi vs. Raytheon Company, United States

In the result, all the appeals of the Revenue for the

ITA 1388/DEL/2023[2010-11]Status: DisposedITAT Delhi31 Aug 2023AY 2010-11

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.1383 To 1392/Del/2023 िनधा"रणवष"/Assessment Yeasrs:2004-05 To 2006-07, 2008-09 To 2011-12 & 2014-15 To 2016-17 बनाम Dcit, Raytheon Company Circle 3(1)(1), Vs. 870, Winter Steet, Int. Taxation, Waltham-Ma 02451, Room No. 416, Foreign Usa, 4Th Floor, E-2 Block, Usa. Dr. S.P. Mukherjee Civic Centre, J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent & आ.अ.सं/.I.T.A No.441/Del/2023 िनधा"रणवष"/Assessment Year:2007-08 बनाम Acit, Raytheon Company Circle 3(1)(1), Vs. C/O Srbc & Associates Int. Taxation, Llp, Golf View Corporate Room No. 416, Tower-B, Sector-42, 4Th Floor, E-2 Block, Sector Road, Gurgaon, Dr. S.P. Mukherjee Civic Centre, Haryana. J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent

Section 143(3)Section 271(1)(c)

…n deleted by the Ld.CIT(Appeals). However, the assessee to by peace approached the authorities for settling the issues under MAP and also subsequently the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited Vs. CIT 432 ITR 471 held that supply of software and document is not royalty. The Ld. Counsel further referring to MAP proceedings submits that it is only on assumption and by deeming fiction it was held that the assessee has a PE in India and the Assessing Officer has not established that there exists PE in India for assessee. Therefore, the Ld. Counsel for M/…

DCIT, Circle-3(1)(1), Int. Taxation, New Delhi vs. Raytheon Company, United States

In the result, all the appeals of the Revenue for the

ITA 1387/DEL/2023[2009-10]Status: DisposedITAT Delhi31 Aug 2023AY 2009-10

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.1383 To 1392/Del/2023 िनधा"रणवष"/Assessment Yeasrs:2004-05 To 2006-07, 2008-09 To 2011-12 & 2014-15 To 2016-17 बनाम Dcit, Raytheon Company Circle 3(1)(1), Vs. 870, Winter Steet, Int. Taxation, Waltham-Ma 02451, Room No. 416, Foreign Usa, 4Th Floor, E-2 Block, Usa. Dr. S.P. Mukherjee Civic Centre, J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent & आ.अ.सं/.I.T.A No.441/Del/2023 िनधा"रणवष"/Assessment Year:2007-08 बनाम Acit, Raytheon Company Circle 3(1)(1), Vs. C/O Srbc & Associates Int. Taxation, Llp, Golf View Corporate Room No. 416, Tower-B, Sector-42, 4Th Floor, E-2 Block, Sector Road, Gurgaon, Dr. S.P. Mukherjee Civic Centre, Haryana. J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent

Section 143(3)Section 271(1)(c)

…n deleted by the Ld.CIT(Appeals). However, the assessee to by peace approached the authorities for settling the issues under MAP and also subsequently the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited Vs. CIT 432 ITR 471 held that supply of software and document is not royalty. The Ld. Counsel further referring to MAP proceedings submits that it is only on assumption and by deeming fiction it was held that the assessee has a PE in India and the Assessing Officer has not established that there exists PE in India for assessee. Therefore, the Ld. Counsel for M/…

DCIT, Circle-3(1)(1) Int. Taxation, New Delhi vs. Raytheon Company, United States

In the result, all the appeals of the Revenue for the

ITA 1386/DEL/2023[2008-09]Status: DisposedITAT Delhi31 Aug 2023AY 2008-09

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.1383 To 1392/Del/2023 िनधा"रणवष"/Assessment Yeasrs:2004-05 To 2006-07, 2008-09 To 2011-12 & 2014-15 To 2016-17 बनाम Dcit, Raytheon Company Circle 3(1)(1), Vs. 870, Winter Steet, Int. Taxation, Waltham-Ma 02451, Room No. 416, Foreign Usa, 4Th Floor, E-2 Block, Usa. Dr. S.P. Mukherjee Civic Centre, J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent & आ.अ.सं/.I.T.A No.441/Del/2023 िनधा"रणवष"/Assessment Year:2007-08 बनाम Acit, Raytheon Company Circle 3(1)(1), Vs. C/O Srbc & Associates Int. Taxation, Llp, Golf View Corporate Room No. 416, Tower-B, Sector-42, 4Th Floor, E-2 Block, Sector Road, Gurgaon, Dr. S.P. Mukherjee Civic Centre, Haryana. J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent

Section 143(3)Section 271(1)(c)

…n deleted by the Ld.CIT(Appeals). However, the assessee to by peace approached the authorities for settling the issues under MAP and also subsequently the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited Vs. CIT 432 ITR 471 held that supply of software and document is not royalty. The Ld. Counsel further referring to MAP proceedings submits that it is only on assumption and by deeming fiction it was held that the assessee has a PE in India and the Assessing Officer has not established that there exists PE in India for assessee. Therefore, the Ld. Counsel for M/…

DCIT, Circle-3(1)(1), Int. Taxation, New Delhi vs. Raytheon Company, United States

In the result, all the appeals of the Revenue for the

ITA 1385/DEL/2023[2006-07]Status: DisposedITAT Delhi31 Aug 2023AY 2006-07

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.1383 To 1392/Del/2023 िनधा"रणवष"/Assessment Yeasrs:2004-05 To 2006-07, 2008-09 To 2011-12 & 2014-15 To 2016-17 बनाम Dcit, Raytheon Company Circle 3(1)(1), Vs. 870, Winter Steet, Int. Taxation, Waltham-Ma 02451, Room No. 416, Foreign Usa, 4Th Floor, E-2 Block, Usa. Dr. S.P. Mukherjee Civic Centre, J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent & आ.अ.सं/.I.T.A No.441/Del/2023 िनधा"रणवष"/Assessment Year:2007-08 बनाम Acit, Raytheon Company Circle 3(1)(1), Vs. C/O Srbc & Associates Int. Taxation, Llp, Golf View Corporate Room No. 416, Tower-B, Sector-42, 4Th Floor, E-2 Block, Sector Road, Gurgaon, Dr. S.P. Mukherjee Civic Centre, Haryana. J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent

Section 143(3)Section 271(1)(c)

…n deleted by the Ld.CIT(Appeals). However, the assessee to by peace approached the authorities for settling the issues under MAP and also subsequently the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited Vs. CIT 432 ITR 471 held that supply of software and document is not royalty. The Ld. Counsel further referring to MAP proceedings submits that it is only on assumption and by deeming fiction it was held that the assessee has a PE in India and the Assessing Officer has not established that there exists PE in India for assessee. Therefore, the Ld. Counsel for M/…

DCIT, Circle-3(1)(1), Int.Taxation, New Delhi vs. Raytheon Company, United States

In the result, all the appeals of the Revenue for the

ITA 1384/DEL/2023[2005-06]Status: DisposedITAT Delhi31 Aug 2023AY 2005-06

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.1383 To 1392/Del/2023 िनधा"रणवष"/Assessment Yeasrs:2004-05 To 2006-07, 2008-09 To 2011-12 & 2014-15 To 2016-17 बनाम Dcit, Raytheon Company Circle 3(1)(1), Vs. 870, Winter Steet, Int. Taxation, Waltham-Ma 02451, Room No. 416, Foreign Usa, 4Th Floor, E-2 Block, Usa. Dr. S.P. Mukherjee Civic Centre, J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent & आ.अ.सं/.I.T.A No.441/Del/2023 िनधा"रणवष"/Assessment Year:2007-08 बनाम Acit, Raytheon Company Circle 3(1)(1), Vs. C/O Srbc & Associates Int. Taxation, Llp, Golf View Corporate Room No. 416, Tower-B, Sector-42, 4Th Floor, E-2 Block, Sector Road, Gurgaon, Dr. S.P. Mukherjee Civic Centre, Haryana. J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent

Section 143(3)Section 271(1)(c)

…n deleted by the Ld.CIT(Appeals). However, the assessee to by peace approached the authorities for settling the issues under MAP and also subsequently the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited Vs. CIT 432 ITR 471 held that supply of software and document is not royalty. The Ld. Counsel further referring to MAP proceedings submits that it is only on assumption and by deeming fiction it was held that the assessee has a PE in India and the Assessing Officer has not established that there exists PE in India for assessee. Therefore, the Ld. Counsel for M/…

DCIT, Circle-3(1)(1), Int. Taxation, New Delhi vs. Raytheon Company, United States

In the result, all the appeals of the Revenue for the

ITA 1383/DEL/2023[2004-05]Status: DisposedITAT Delhi31 Aug 2023AY 2004-05

Bench: Shri Challa Nagendra Prasad & Shri M Balaganeshआ.अ.सं/.I.T.A Nos.1383 To 1392/Del/2023 िनधा"रणवष"/Assessment Yeasrs:2004-05 To 2006-07, 2008-09 To 2011-12 & 2014-15 To 2016-17 बनाम Dcit, Raytheon Company Circle 3(1)(1), Vs. 870, Winter Steet, Int. Taxation, Waltham-Ma 02451, Room No. 416, Foreign Usa, 4Th Floor, E-2 Block, Usa. Dr. S.P. Mukherjee Civic Centre, J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent & आ.अ.सं/.I.T.A No.441/Del/2023 िनधा"रणवष"/Assessment Year:2007-08 बनाम Acit, Raytheon Company Circle 3(1)(1), Vs. C/O Srbc & Associates Int. Taxation, Llp, Golf View Corporate Room No. 416, Tower-B, Sector-42, 4Th Floor, E-2 Block, Sector Road, Gurgaon, Dr. S.P. Mukherjee Civic Centre, Haryana. J.L. Nehru Marg, New Delhi. Pan No. Aadcr3511P अपीलाथ" Appellant ""यथ"/Respondent

Section 143(3)Section 271(1)(c)

…n deleted by the Ld.CIT(Appeals). However, the assessee to by peace approached the authorities for settling the issues under MAP and also subsequently the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited Vs. CIT 432 ITR 471 held that supply of software and document is not royalty. The Ld. Counsel further referring to MAP proceedings submits that it is only on assumption and by deeming fiction it was held that the assessee has a PE in India and the Assessing Officer has not established that there exists PE in India for assessee. Therefore, the Ld. Counsel for M/…

Commissioner of Income Tax (International Taxation)-2 vs. M/S Csg International Ltd

ITA - 487 / 2023HC Delhi29 Aug 2023
Section 14Section 30

…al [in short, “Tribunal”]. 8. The Tribunal, having examined the facts on record, proceeded to allow the appeal filed by the respondent/assessee by applying the ratio of the judgment in Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT, [2021] 432 ITR 471 of the Supreme Court. 9. The findings of the fact returned by the Tribunal were in the background of the following facts: “4. Facts relevant to the adjudication of the case are that the assessee was incorporated under the laws of United Kingdom ('UK') on June 29, 1992 with the primary objective of carrying on the business of speciali…

Communications Global Network Services Limited, Bangalore vs. Deputy Commissioner of Income Tax (International Taxation), Circle-2(2), Bangalore

In the result, appeals filed by the assessee are partly allowed

ITA 32/BANG/2021[2011-12]Status: DisposedITAT Bangalore29 Aug 2023AY 2011-12

Bench: Shri George George K & Shri Laxmi Prasad Sahuappeal No. Appellant Respondent It(It)A M/S. Communications Global The Deputy Commissioner Of No.89/Bang/2019 Network Services Limited, Income Tax 81, Newgate Street, London, (International Taxation), Assessment Year : Ec1A 7Aj, Circle – 2(1), 2009-10 United Kingdom. Bengaluru. Pan : Aagcc 9220 K It(It)A The Deputy Commissioner Of Nos.2218/Bang/2019, Income Tax 32/Bang/2021, -Do (International Taxation), 709/Bang/2022, Circle – 2(2), 165 To 167/Bang/2023 Bengaluru. Assessment Years : 2010-11 To 2015-16 Assessee By : Shri. T. Suryanarayana, Smt. Tanmayee Rajkumar, Advocates Revenue By : Shri. Aseem Sharma, Cit(Dr), Itat, Bengaluru. Date Of Hearing : 28.08.2023 Date Of Pronouncement : 29.08.2023

For Appellant: Shri. T. Suryanarayana, Smt. Tanmayee RajkumarFor Respondent: Shri. Aseem Sharma, CIT(DR), ITAT, Bengaluru
Section 143(3)Section 147Section 201Section 5(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Appeal No. Appellant Respondent IT(IT)A M/s. Communications Global The Deputy Commissioner of No.89/Bang/2019 Network Services Limited, Income Tax 81, Newgate Street, London, (International Taxation), Assessment Year : EC1A 7AJ, Circle – 2(1), 2009-10 United Kingdom. Bengaluru. PAN : AAGCC 9220 K IT(IT)A The Deputy Commissioner of Nos.2218/Bang/2019, Income Tax 32/Bang/2021, -do (International Taxation), 709/Bang/2022, Circle – 2(2), 165 to 167/Bang/2023 Bengaluru. A…

M/S Communications Global Network Services Limited, Bangalore vs. Deputy Commissioner of Income Tax International Taxation Circle-2(1), Bangalore

In the result, appeals filed by the assessee are partly allowed

ITA 89/BANG/2019[2009-10]Status: DisposedITAT Bangalore29 Aug 2023AY 2009-10

Bench: Shri George George K & Shri Laxmi Prasad Sahuappeal No. Appellant Respondent It(It)A M/S. Communications Global The Deputy Commissioner Of No.89/Bang/2019 Network Services Limited, Income Tax 81, Newgate Street, London, (International Taxation), Assessment Year : Ec1A 7Aj, Circle – 2(1), 2009-10 United Kingdom. Bengaluru. Pan : Aagcc 9220 K It(It)A The Deputy Commissioner Of Nos.2218/Bang/2019, Income Tax 32/Bang/2021, -Do (International Taxation), 709/Bang/2022, Circle – 2(2), 165 To 167/Bang/2023 Bengaluru. Assessment Years : 2010-11 To 2015-16 Assessee By : Shri. T. Suryanarayana, Smt. Tanmayee Rajkumar, Advocates Revenue By : Shri. Aseem Sharma, Cit(Dr), Itat, Bengaluru. Date Of Hearing : 28.08.2023 Date Of Pronouncement : 29.08.2023

For Appellant: Shri. T. Suryanarayana, Smt. Tanmayee RajkumarFor Respondent: Shri. Aseem Sharma, CIT(DR), ITAT, Bengaluru
Section 143(3)Section 147Section 201Section 5(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Appeal No. Appellant Respondent IT(IT)A M/s. Communications Global The Deputy Commissioner of No.89/Bang/2019 Network Services Limited, Income Tax 81, Newgate Street, London, (International Taxation), Assessment Year : EC1A 7AJ, Circle – 2(1), 2009-10 United Kingdom. Bengaluru. PAN : AAGCC 9220 K IT(IT)A The Deputy Commissioner of Nos.2218/Bang/2019, Income Tax 32/Bang/2021, -do (International Taxation), 709/Bang/2022, Circle – 2(2), 165 to 167/Bang/2023 Bengaluru. A…

M/S. Communications Global Network Services Limited, United Kingdom vs. Deputy Commissioner of Income Tax (International Taxation), Circle- 2(1), Bangalore

In the result, appeals filed by the assessee are partly allowed

ITA 2218/BANG/2019[2010-11]Status: DisposedITAT Bangalore29 Aug 2023AY 2010-11

Bench: Shri George George K & Shri Laxmi Prasad Sahuappeal No. Appellant Respondent It(It)A M/S. Communications Global The Deputy Commissioner Of No.89/Bang/2019 Network Services Limited, Income Tax 81, Newgate Street, London, (International Taxation), Assessment Year : Ec1A 7Aj, Circle – 2(1), 2009-10 United Kingdom. Bengaluru. Pan : Aagcc 9220 K It(It)A The Deputy Commissioner Of Nos.2218/Bang/2019, Income Tax 32/Bang/2021, -Do (International Taxation), 709/Bang/2022, Circle – 2(2), 165 To 167/Bang/2023 Bengaluru. Assessment Years : 2010-11 To 2015-16 Assessee By : Shri. T. Suryanarayana, Smt. Tanmayee Rajkumar, Advocates Revenue By : Shri. Aseem Sharma, Cit(Dr), Itat, Bengaluru. Date Of Hearing : 28.08.2023 Date Of Pronouncement : 29.08.2023

For Appellant: Shri. T. Suryanarayana, Smt. Tanmayee RajkumarFor Respondent: Shri. Aseem Sharma, CIT(DR), ITAT, Bengaluru
Section 143(3)Section 147Section 201Section 5(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Appeal No. Appellant Respondent IT(IT)A M/s. Communications Global The Deputy Commissioner of No.89/Bang/2019 Network Services Limited, Income Tax 81, Newgate Street, London, (International Taxation), Assessment Year : EC1A 7AJ, Circle – 2(1), 2009-10 United Kingdom. Bengaluru. PAN : AAGCC 9220 K IT(IT)A The Deputy Commissioner of Nos.2218/Bang/2019, Income Tax 32/Bang/2021, -do (International Taxation), 709/Bang/2022, Circle – 2(2), 165 to 167/Bang/2023 Bengaluru. A…

The Commissioner of Income Tax - International Taxation -3 vs. Siemens Industry Software Ltd. (Formerly Known As Mentor Graphics (Ireland) Ltd

ITA - 485 / 2023HC Delhi25 Aug 2023

…$~39 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 485/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 ..... Appellant Through: Mr Ruchir Bhatia, Sr. Standing Counsel with Ms Priya Sarkar, Standing Counsel. versus SIEMENS INDUSTRY SOFTWARE LTD. (FORMERLY KNOWN AS MENTOR GRAPHICS (IRELAND) LTD. ..... Respondent Through: Mr Mayank Nagi, Advocate. CORAM: HON'BLE MR JUSTICE RAJIV SHAKDHER HON'BLE MR JUSTICE GIRISH KATHPALIA O R D E R % 25.08.2023 [Physical Hearing/Hybrid Hearing (as per request)] 1. This Appeal c…

Tech Data(Singapore) Pte Limited, Mumbai vs. The Deputy Comm. of Income Tax (It) Circle -4(1)(2), Mumbai

In the result, ground No.3 of appeal is allowed

ITA 2367/MUM/2022[2019-20]Status: DisposedITAT Mumbai21 Aug 2023AY 2019-20

Bench: Shri Vikas Awasthy & Shri Gagan Goyalआअसं.2367/मुं/ 2022 (िन.व.2019-20) Tech Data (Singapore) Pte Limited, 10, #05-17/20 Techpoint, Ang Mo Kio Street 65, Singapore -569059 Pan: Aagct-0951-J ...... अपीलाथ" /Appellant बनाम Vs. The Deputy Commissioner Of Income Tax International Taxation, Circle -4(1)(2) Mumbai . ..... "ितवादी/Respondent अपीलाथ" "ारा/ Appellant By : Shri Nitesh Joshi "ितवादी "ारा/Respondent By : Shri Avneesh Tiwari सुनवाई क" ितिथ/ Date Of Hearing : 22/05/2023 घोषणा क" ितिथ/ Date Of Pronouncement : 21/08/2023 आदेश आदेश/ Order आदेश आदेश Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Assessment Order Dated 19/07/2022 Passed U/S. 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961 [ In Short ‘The Act], For The Assessment Year 2019-20. 2. The Assessee In Appeal Has Raised Five Grounds. The Gist Of Grounds Raised By The Assessee In Appeal Is As Under: (I) Challenge To Validity Of Assessment – Notice U/S. 143(2) Of The Act Issued Without Authority.

For Appellant: Shri Nitesh JoshiFor Respondent: Shri Avneesh Tiwari
Section 143(2)Section 143(3)Section 234ASection 274

…e to various authorized re-sellers. The assessee while filling return of income offered income from sale of software as ‘royalty’. After the decision of Hon’ble Supreme Court rendered in the case of Engineering Analysis Centre of Excellence Pvt. Ltd. vs. CIT, 432 ITR 471/125 taxmann.com 42, the assessee realized that the assessee has been wrongly offering income from sale of software as royalty. In fact, income from sale of software falls under the head, ‘Business Income’. Shri Joshi referred to Distribution Agreement dated 01/10/2010 at page 154 of the paper book. He pointed that 3 the said agreement is between…

The Commissioner of Income Tax - International Taxation -3 vs. Softwareone Pte Ltd

ITA - 447 / 2023HC Delhi14 Aug 2023

Bench: The Tribunal Was Whether The Sale Of The Software Would Result In The Respondent/Assessee Earning Royalty. 4. The Tribunal Has Concluded That Since It Was A Sale Of Copyrighted Material & Not Copyright Itself, There Is No Question Of Royalty Accruing To The Respondent/Assessee.

…$~31 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 447/2023 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 ..... Appellant Through: Mr Ruchir Bhatia, Sr Standing Counsel with Ms Deeksha Gupta, Adv. versus SOFTWAREONE PTE LTD. ..... Respondent Through: Ms Ananya Kapoor, Adv. CORAM: HON'BLE MR. JUSTICE RAJIV SHAKDHER HON'BLE MS. JUSTICE NEENA BANSAL KRISHNA O R D E R % 14.08.2023 [Physical Hearing/Hybrid Hearing (as per request)] 1. This appeal concerns Assessment Year (AY) 2017-18. 2. The appellant/revenue s…

Ge Precision Healthcare Llc, Karnataka vs. ACIT Circle International Tax 1(3)(1), New Delhi

In the result, appeal is allowed, as indicated above

ITA 404/DEL/2023[2020-21]Status: DisposedITAT Delhi14 Aug 2023AY 2020-21

Bench: Shri G.S. Pannu & Shri Saktijit Deyassessment Year: 2020-21

Section 115ASection 143(3)Section 144C(13)Section 4Section 56Section 56(1)Section 9(1)(vii)

…the receipts are not taxable as royalty income either under section 4 | P a g e AY: 2020-21 9(1)(vi) of the Act or under the tax treaty in view of the decision of Hon’ble Supreme Court in case of Engineering Analysis Centre of Excellence Pvt. Ltd. Vs. CIT (432 ITR 471) and the decision of Hon’ble Delhi High Court in case of DIT Vs. Infrasoft Ltd. (2014) 264 CTR 329. 8. He submitted, once the receipts are not in the nature of royalty, it can only be treated as business income under Article 7 of the tax treaty and in absence of PE in India, it is not taxable. He submitted, though, the receipts are purely in t…

Telefonica De Espana Sa, Bangalore vs. Deputy Commissioner of Income Tax (International Taxation), Circle-2(2), Bangalore

In the result, all the three appeals filed by the assessee stands partly allowed as indicated hereinabove

ITA 180/BANG/2021[2011-12]Status: DisposedITAT Bangalore10 Aug 2023AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(It)A Nos. 2657/Bang/2019, 180/Bang/2021 & 817/Bang/2022 Assessment Years : 2010-11 To 2012-13 M/S. Telefonica Depreciation Espana Sa, C/O. Bsr & Co.Llp, 3Rd Floor, Pebble The Acit(It)/Dcit(It), Beach, Circle – 2(2), Embassy Golf Links Bangalore. Business Park, Vs. Off Intermediate Ring Road, Bangalore – 560 071. Pan: Aahct0411G Appellant Respondent Assessee By : Shri Sharath Rao, Ca Revenue By : Shri D.K. Mishra, Cit Dr

For Appellant: Shri Sharath Rao, CAFor Respondent: Shri D.K. Mishra, CIT DR
Section 147Section 148Section 201Section 234ASection 9(1)(vi)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER IT(IT)A Nos. 2657/Bang/2019, 180/Bang/2021 & 817/Bang/2022 Assessment Years : 2010-11 to 2012-13 M/s. Telefonica Depreciation Espana SA, C/o. BSR & Co.LLP, 3rd Floor, Pebble The ACIT(IT)/DCIT(IT), Beach, Circle – 2(2), Embassy Golf Links Bangalore. Business Park, Vs. Off Intermediate Ring Road, Bangalore – 560 071. PAN: AAHCT0411G APPELLANT RESPONDENT Assessee by : Shri Sharath Rao, CA Revenue by : Shri D.K. Mishra, CIT DR Date of Hearing : 25-07-2023 Date of Pronouncem…

M/S. Telefonica De Espana Sa, Bangalore vs. Assistant Commissioner of Income Tax, (International Taxation), Circle- 2(2), Bangalore

In the result, all the three appeals filed by the assessee stands partly allowed as indicated hereinabove

ITA 2657/BANG/2019[2010-11]Status: DisposedITAT Bangalore10 Aug 2023AY 2010-11

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(It)A Nos. 2657/Bang/2019, 180/Bang/2021 & 817/Bang/2022 Assessment Years : 2010-11 To 2012-13 M/S. Telefonica Depreciation Espana Sa, C/O. Bsr & Co.Llp, 3Rd Floor, Pebble The Acit(It)/Dcit(It), Beach, Circle – 2(2), Embassy Golf Links Bangalore. Business Park, Vs. Off Intermediate Ring Road, Bangalore – 560 071. Pan: Aahct0411G Appellant Respondent Assessee By : Shri Sharath Rao, Ca Revenue By : Shri D.K. Mishra, Cit Dr

For Appellant: Shri Sharath Rao, CAFor Respondent: Shri D.K. Mishra, CIT DR
Section 147Section 148Section 201Section 234ASection 9(1)(vi)

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH : BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER IT(IT)A Nos. 2657/Bang/2019, 180/Bang/2021 & 817/Bang/2022 Assessment Years : 2010-11 to 2012-13 M/s. Telefonica Depreciation Espana SA, C/o. BSR & Co.LLP, 3rd Floor, Pebble The ACIT(IT)/DCIT(IT), Beach, Circle – 2(2), Embassy Golf Links Bangalore. Business Park, Vs. Off Intermediate Ring Road, Bangalore – 560 071. PAN: AAHCT0411G APPELLANT RESPONDENT Assessee by : Shri Sharath Rao, CA Revenue by : Shri D.K. Mishra, CIT DR Date of Hearing : 25-07-2023 Date of Pronouncem…

DCIT, Circle-1(1)(2), Int. Taxation, New Delhi vs. Black Duck Software Inc., Usa

In the result, appeal is dismissed

ITA 602/DEL/2023[2017-18]Status: DisposedITAT Delhi10 Aug 2023AY 2017-18

Bench: Shri G.S. Pannu, Hon’Ble & Shri Saktijit Dey, Hon’Bleassessment Year: 2017-18

Section 9(1)(vi)

…3 | P a g e AY: 2017-18 5. From the submissions made by the assessee and materials produced, learned Commissioner (Appeals) noticed that following the decision of Hon’ble Supreme Court in case of Engineering Analysis Centre of Excellence Pvt. Ltd., (2021) 432 ITR 471, the Tribunal has decided the issue in favour of the assessee in past assessment years, i.e., assessment years 2012-13, 2014-15, 2015-16 and 2016-17. He further found that the Assessing Officer himself in assessment year 2019-20 has accepted assessee’s claim that the amounts received from sale/supply of software licences and associated servi…

Commissioner of Income Tax (International Taxation)-1, New Delhi vs. Cognyte Technologies Israel Ltd. (Formerly Known As M/S Verint Systems Ltd.)

ITA/433/2023HC Delhi08 Aug 2023

Bench: HON'BLE MR. JUSTICE RAJIV SHAKDHER,HON'BLE MR. JUSTICE GIRISH KATHPALIA

Section 9(1)(vi)

…the extract of the order passed by the Tribunal for AY 2010-11 shows that the Tribunal, at that stage, had noticed the judgment of the Supreme Court on the very same issue rendered in Engineering Analysis Centre of Excellence Private Limited vs CIT (2021) 432 ITR 471 (SC). 18. Faced with this, the representative of the appellant/revenue could not dispute the principle of law enunciated in the aforementioned judgment of the Supreme Court. This aspect is noted in paragraph 7 of the impugned order. 19. Although Mr Rai sought to contend that the software was custom- built, he was unable to demonstrate suc…

Commissioner of Income Tax (International Taxation)-1, New Delhi vs. Cognyte Technologies Israel Ltd. (Formerly Known As M/S Verint Systems Ltd.)

ITA - 433 / 2023HC Delhi08 Aug 2023
Section 9(1)(vi)

…the extract of the order passed by the Tribunal for AY 2010-11 shows that the Tribunal, at that stage, had noticed the judgment of the Supreme Court on the very same issue rendered in Engineering Analysis Centre of Excellence Private Limited vs CIT (2021) 432 ITR 471 (SC). 18. Faced with this, the representative of the appellant/revenue could not dispute the principle of law enunciated in the aforementioned judgment of the Supreme Court. This aspect is noted in paragraph 7 of the impugned order. 19. Although Mr Rai sought to contend that the software was custom- built, he was unable to demonstrate suc…

The Commissioner of Income Tax (International Taxation)-1, New Delhi vs. Cognyte Technologies Israel Ltd. (Formerly Known As M/S Verint Systems Ltd.)

ITA - 434 / 2023HC Delhi08 Aug 2023
Section 9(1)(vi)

…, the extract of the order passed by the Tribunal for AY 2010-11 shows that the Tribunal at that stage had noticed the judgment of the Supreme Court on the very same issue rendered in Engineering Analysis Centre of Excellence Private Limited vs CIT (2021) 432 ITR 471 (SC). 18. Faced with this, the representative of the appellant/revenue could not dispute the principle of law enunciated in the aforementioned judgment of the Hon‟ble Supreme Court. This aspect is noted in paragraph 7 of the impugned order. 19. Although Mr Rai sought to contend that the software was custom- built, he was unable to show us…