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 366,470 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

Manisha Kiran Temkar, Mumbai vs. ACIT -21(2), Mumbai

In the result, the grounds of appeal raised by the assessee are

ITA 674/MUM/2025[2013-14]Status: DisposedITAT Mumbai18 Aug 2025AY 2013-14

Bench: Shri Pawan Singh& Ms. Padmavathy S

Section 195Section 250Section 254(1)Section 40Section 90(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER& MS. PADMAVATHY S, ACCOUNTANT MEMBER ITA No. 673/MUM/2025 (AY: 2014-15) (Physical hearing) Manisha Kiran Temkar ACIT – 21(2), Mumbai 32, Vinod Villa, Worli Hill Road, Worli, Vs Piramal Chamber, Lal Baug, Mumbai – 400018. Parel, Mumbai – 400012. [PAN: ABSPT7644J] Appellant / Assessee Respondent / Revenue Assessee by Ms. Kinjal Bhuta, Advocate Revenue by Shri Annavaran Kosuri, Sr. DR Date of hearing 10.07.2025 Date of pronouncement 18.08.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEM…

Manish Kiran Temkar, Mumbai vs. ACIT-21(2), Mumbai

In the result, the grounds of appeal raised by the assessee are

ITA 673/MUM/2025[2014-15]Status: DisposedITAT Mumbai18 Aug 2025AY 2014-15

Bench: Shri Pawan Singh& Ms. Padmavathy S

Section 195Section 250Section 254(1)Section 40Section 90(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER& MS. PADMAVATHY S, ACCOUNTANT MEMBER ITA No. 673/MUM/2025 (AY: 2014-15) (Physical hearing) Manisha Kiran Temkar ACIT – 21(2), Mumbai 32, Vinod Villa, Worli Hill Road, Worli, Vs Piramal Chamber, Lal Baug, Mumbai – 400018. Parel, Mumbai – 400012. [PAN: ABSPT7644J] Appellant / Assessee Respondent / Revenue Assessee by Ms. Kinjal Bhuta, Advocate Revenue by Shri Annavaran Kosuri, Sr. DR Date of hearing 10.07.2025 Date of pronouncement 18.08.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEM…

The Commissioner of Income Tax - International Taxation -3 vs. Xiocom ( Nz) Ltd

The appeal is dismissed against the appellant/the Revenue and in

ITA/299/2025HC Delhi12 Aug 2025

Bench: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR

Section 195Section 260ASection 9(1)(vi)

…ITA 299/2025 Page 1 of 6 $~89 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 12.08.2025 + ITA 299/2025 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC & Ms.Aditi Sabharwal, Advocate. versus XIOCOM (NZ) LTD .....Respon…

Pr. Commissioner of Income Tax vs. M/S Synamedia Limited

The appeal stands dismissed

ITA/698/2023HC Karnataka12 Aug 2025

Bench: S.G.PANDIT,K. V. ARAVIND

Section 260Section 9

…- 1 - HC-KAR NC: 2025:KHC:31121-DB ITA No. 698 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF AUGUST, 2025 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR. JUSTICE K. V. ARAVIND INCOME TAX APPEAL NO. 698 OF 2023 BETWEEN: 1. PR. COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION), KORAMANGALA, BANGALORE. 2. THE DY. COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION, CIRCLE 1(2), KORAMANGALA, BANGALORE. …APPELLANTS (BY SRI. SANMATHI E. I., ADV.) AND: M/S. SYNAMEDIA LIMITED (FORMERLY KNOWN AS NDS LIMITED), BLOCK NO.9…

Pr. Commissioner of Income Tax vs. M/S Ibm Singapore Pte Ltd

The appeals are dismissed as being devoid

ITA/681/2023HC Karnataka12 Aug 2025

Bench: S.G.PANDIT,K. V. ARAVIND

Section 260

…aid review petition. 8. On the other hand, Sri T. Suryanarayana, learned Senior Counsel appearing for Smt. Tanmayee Rajkumar, learned counsel for the respondent–assessee, submits that the 2 (2021) 432 ITR 471 - 10 - HC-KAR NC: 2025:KHC:31117-DB ITA No. 681 of 2023 C/W ITA No. 682 of 2023 ITA No. 683 of 2023 substantial questions of law raised in these appeals are no longer res integra in view of the law laid down by the Hon’ble Supreme Court in Engineering Analysis. It is submitted that what is sold is a copyrighted article an…

The Commissioner of Income Tax - International Taxation -3 vs. Xiocom ( Nz) Ltd

The appeal is dismissed against the

ITA - 299 / 2025HC Delhi12 Aug 2025
Section 195Section 260ASection 9Section 9(1)(vi)

…ourt Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/03/2026 at 14:16:16 well settled by the judgment of the Hon’ble Supreme court in the case of Engineering Analysis Centre of Excellence Private Limited 432 ITR 471 wherein the Hon’ble Supreme Court has also considered the Judgment of Hon’ble Delhi High Court. The relevant finding of the Hon’ble Supreme Court read as under :- 168. Given the definition of royalties contained in Article 12 of the DTAAs mentioned in paragraph 41 of this judgment, it is clear that there is no obligation on the persons men…

Shri. Vikram Dhondu Rao, Bangalore vs. DCIT, Circle-4(1)(1), Bangalore

In the result, the appeal of the assessee in ITA

ITA 2558/BANG/2024[2019-20]Status: DisposedITAT Bangalore11 Aug 2025AY 2019-20

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Sri Sandeep Chalapathy, A.RFor Respondent: Sri Subramanian, D.R
Section 139(1)Section 143(1)Section 154Section 234BSection 244ASection 250Section 44ASection 90

…ITA No.2557 & 2558/Bang/2024 Mr. Vikram Dhondu Rao, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “B’’BENCH: BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA Nos.2557 & 2558/Bang/2024 Assessment Years : 2018-19 & 2019-20 Mr. Vikram Dhondu Rao Villa 112, Adarsh Plam Retreat Outer Ring Road Bellandur Post DCIT Vs. Devarabeesanahalli Circle-4(1)(1) Bangalore 560 037 Bangalore PAN NO :AANPR3719C APPELLANT RESPONDENT Appellant by : Sri Sandeep Chalapathy, A.R. Respondent by : Sri Subramanian, D.R. Date of Hearing : 14.05.2025 Date of Pronouncement : 11.08.2025 O R D E…

The Principal Commissioner Of Income Tax vs. M/S Oasis Centre LLC

The appeal is disposed of

ITA/199/2024HC Karnataka06 Aug 2025

Bench: S.G.PANDIT,K. V. ARAVIND

Section 260Section 9(1)(vi)

…preferred an appeal before the Tribunal. The Tribunal, under the impugned order considering the law laid down by the Hon'ble Apex Court in the case of ENGINEERING ANALYSIS CENTRE OF EXCELLENCE PRIVATE LIMITED v/s CIT AND ANOTHER reported in (2021) 432 ITR 472 (SC) remanded the matter for examination of taxability of software fees under the Double Taxation Avoidance Agreement (‘DTAA’ for short) entered between - 4 - HC-KAR NC: 2025:KHC:30480-DB ITA No. 199 of 2024 India and UAE. The revenue aggrieved by the order of remand, by raising substantial questions of law as referre…

Sonali Verma, Secunderabad vs. ITO., Ward-12(6), Hyderabad

In the result, appeal filed by the assessee is allowed

ITA 778/HYD/2025[2020-2021]Status: DisposedITAT Hyderabad30 Jul 2025AY 2020-2021

Bench: Shri Vijay Pal Rao, Vice-A N D Shri Manjunatha, Gआ.अपी.सं /Ita No.778/Hyd/2025 (िनधा"रण वष"/Assessment Year: 2020-21) Smt. Sonali Verma Vs. Income Tax Officer Secunderabad Ward 12 (6) Pan:Amnpv3410A Hyderabad (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri Sk Chaturvedi, Ca राज" व "ारा/Revenue By:: Shri Gurpreet Singh Sr.Ar सुनवाई की तारीख/Date Of Hearing: 23/07/2025 घोषणा की तारीख/Pronouncement: 30/07/2025 आदेश/Order

For Appellant: Shri SK Chaturvedi, CAFor Respondent: : Shri Gurpreet Singh Sr.AR
Section 139(1)Section 139(5)Section 143(1)Section 154Section 90Section 91

…of the supporting documents filed by assessee.” 6. Thus, the Tribunal has held that the provisions of DTAA overrides the provisions of the Act and the Rule as held by the Hon'ble Supreme Court in the case of Engineering Analysis Centre of Excellence vs. CIT 432 ITR 471. Similar view has been taken by the Delhi Bench of the Tribunal in the case of NICDC Neemrana Solar Power Ltd. v. Deputy Commissioner of Income- tax (Supra) in Para 8 & 9 as under: “8. In the case of Sumedha Arora v. Income -Tax Officer [2023] 154 taxmann.com 535 (Delhi - Trib.) the Co-ordinate bench held as under: "7. As stated, section 90 of th…

M/S.Redington Distributions Pte Ltd., Singapore vs. ACIT, Intltaxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 894/CHNY/2025[2016-17]Status: DisposedITAT Chennai29 Jul 2025AY 2016-17

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…een offering the royalty income to tax in India even though two views were possible at the material time when the returns of income were filed, and that later on, the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P.) Ltd (432 ITR 471) had held that such royalty income is not subject to tax in India. This contemporaneous fact, according to the Ld. Senior Counsel demonstrated the bonafide of the assessee while offering income to tax in India, which it believed was subject to be taxed in India and which was not. 14. The Ld. Sr Counsel further pointed out to us that, the asses…

M/S.Redington Distributions Pte Ltd., Singapore vs. ACIT, Intltaxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 893/CHNY/2025[2015-16]Status: DisposedITAT Chennai29 Jul 2025AY 2015-16

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…een offering the royalty income to tax in India even though two views were possible at the material time when the returns of income were filed, and that later on, the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P.) Ltd (432 ITR 471) had held that such royalty income is not subject to tax in India. This contemporaneous fact, according to the Ld. Senior Counsel demonstrated the bonafide of the assessee while offering income to tax in India, which it believed was subject to be taxed in India and which was not. 14. The Ld. Sr Counsel further pointed out to us that, the asses…

M/S. Redington Distribution Pte Ltd., Singapore vs. ACIT, Intl Taxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 892/CHNY/2025[2014-15]Status: DisposedITAT Chennai29 Jul 2025AY 2014-15

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…een offering the royalty income to tax in India even though two views were possible at the material time when the returns of income were filed, and that later on, the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P.) Ltd (432 ITR 471) had held that such royalty income is not subject to tax in India. This contemporaneous fact, according to the Ld. Senior Counsel demonstrated the bonafide of the assessee while offering income to tax in India, which it believed was subject to be taxed in India and which was not. 14. The Ld. Sr Counsel further pointed out to us that, the asses…

M/S. Redington Distribution Pte Ltd., Singapore vs. ACIT, Intl Taxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 891/CHNY/2025[2013-14]Status: DisposedITAT Chennai29 Jul 2025AY 2013-14

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…een offering the royalty income to tax in India even though two views were possible at the material time when the returns of income were filed, and that later on, the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P.) Ltd (432 ITR 471) had held that such royalty income is not subject to tax in India. This contemporaneous fact, according to the Ld. Senior Counsel demonstrated the bonafide of the assessee while offering income to tax in India, which it believed was subject to be taxed in India and which was not. 14. The Ld. Sr Counsel further pointed out to us that, the asses…

M/S.Redington Distributors Pte Ltd., Singapore vs. ACIT, Intl Taxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 890/CHNY/2025[2012-13]Status: DisposedITAT Chennai29 Jul 2025AY 2012-13

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…een offering the royalty income to tax in India even though two views were possible at the material time when the returns of income were filed, and that later on, the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P.) Ltd (432 ITR 471) had held that such royalty income is not subject to tax in India. This contemporaneous fact, according to the Ld. Senior Counsel demonstrated the bonafide of the assessee while offering income to tax in India, which it believed was subject to be taxed in India and which was not. 14. The Ld. Sr Counsel further pointed out to us that, the asses…

M/S.Redington Distribution Pte Ltd., Singapore vs. ACIT, Intl Taxation Circle-2(1), Chennai

In the result, all the appeals filed by the assessee stands allowed

ITA 889/CHNY/2025[2011-12]Status: DisposedITAT Chennai29 Jul 2025AY 2011-12

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr. Percy PardiwalaFor Respondent: Mr. Shiva Srinivas, CIT
Section 144CSection 148Section 271(1)(c)

…een offering the royalty income to tax in India even though two views were possible at the material time when the returns of income were filed, and that later on, the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P.) Ltd (432 ITR 471) had held that such royalty income is not subject to tax in India. This contemporaneous fact, according to the Ld. Senior Counsel demonstrated the bonafide of the assessee while offering income to tax in India, which it believed was subject to be taxed in India and which was not. 14. The Ld. Sr Counsel further pointed out to us that, the asses…

Shell Information Technology International Bv, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation )-4(2)(1), Mumbai

ITA 1750/MUM/2025[2022-23]Status: DisposedITAT Mumbai28 Jul 2025AY 2022-23

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI PRABHASH SHANKAR (Accountant Member)

For Appellant: Shri Madhur AgarwalFor Respondent: Shri Satya Pal Kumar
Section 143(3)Section 144C(13)Section 144C(5)Section 2(24)Section 234BSection 270A

…of the Assessee in respect of IT Support Services Fee. Further, we note that for the Assessment Year 2019-2020, the DRP had, following the judgment of the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Pvt. Ltd. Vs. CIT: 2021] 432 ITR 471 (SC), directed the Assessing Officer not to treat Software Access Fee as ‘royalties’. Since according to the Assessing Officer the IT Support Services were intricately connected with the provision of Software Access Service, the IT Support Services would also not qualify as ‘royalties’ in terms of Article 12(4) of the DTAA or as ‘Fee for Technica…

Sanmoy Ray, Hooghly vs. Income Tax Officer 24(2), Hoohghly

In the result, appeal filed by the assessee is allowed

ITA 683/KOL/2025[2023-24]Status: DisposedITAT Kolkata24 Jul 2025AY 2023-24

Bench: Us, The Ld. Ar Argued That The Filing Of Form 67 Within The Stipulated Time Was A Directory Provision & Not Mandatory. It Was Averred That The Us-India Dtaa Would Come To The Rescue Of The Assessee In This Regard.

Section 143(1)Section 250Section 90

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH”, KOLKATA SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No.683/KOL/2025 (Assessment Year 2023-24) Sanmoy Ray, 7, Rishi Avenue, Bhadreshwar S.O., West Bengal - 712124 [PAN: AMSPR4948Q] ……..…...…………….... Appellant vs. Income Tax Officer 24(2), Aaykar Bhawan, G.T. Road, Khadina More, P.O., Chinsurah - 712101 ................................. Respondent Appearances by: Assessee represented by : Nilesh Kariya, AR Department represented by : S.B. Chakraborthy, Sr. DR Date of concluding the hearing : 21.07.2025 Date of pronouncing the…

Trans Union Llc, Pune vs. Deputy Commissioner of Income Tax 4(1)(2), Mumbai

ITA 1441/MUM/2025[2019-20]Status: DisposedITAT Mumbai17 Jul 2025AY 2019-20

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

For Appellant: Shri Rajan Vora, Shri NikhilFor Respondent: Shri Krishna Kumar, Sr. DR
Section 143(1)Section 154Section 250Section 9(1)(vi)

…ction 154 filed before the AO, that the software license charges received from the Indian Associate Enterprise (AE) as not taxable consequent to the decision of the Hon'ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P) Ltd. [2021] 432 ITR 471 (SC). 2. The facts in all these appeals are identical except for the figures disputed under each of these appeals. Accordingly these appeals were heard together and disposed off through this common order. 3. The assessee is a company incorporated in United States of America (USA) and is a tax resident of USA. The assessee is part of the group i…

Trans Union Llc, Pune vs. Deputy Commissioner of Income Tax 4(1)(2), Mumbai

ITA 1405/MUM/2025[2018-19]Status: DisposedITAT Mumbai17 Jul 2025AY 2018-19

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

For Appellant: Shri Rajan Vora, Shri NikhilFor Respondent: Shri Krishna Kumar, Sr. DR
Section 143(1)Section 154Section 250Section 9(1)(vi)

…ction 154 filed before the AO, that the software license charges received from the Indian Associate Enterprise (AE) as not taxable consequent to the decision of the Hon'ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P) Ltd. [2021] 432 ITR 471 (SC). 2. The facts in all these appeals are identical except for the figures disputed under each of these appeals. Accordingly these appeals were heard together and disposed off through this common order. 3. The assessee is a company incorporated in United States of America (USA) and is a tax resident of USA. The assessee is part of the group i…

Trans Union Llc, Pune vs. Deputy Commissioner of Income Tax 4(1)(2), Mumbai

ITA 1404/MUM/2025[2017-18]Status: DisposedITAT Mumbai17 Jul 2025AY 2017-18

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

For Appellant: Shri Rajan Vora, Shri NikhilFor Respondent: Shri Krishna Kumar, Sr. DR
Section 143(1)Section 154Section 250Section 9(1)(vi)

…ction 154 filed before the AO, that the software license charges received from the Indian Associate Enterprise (AE) as not taxable consequent to the decision of the Hon'ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P) Ltd. [2021] 432 ITR 471 (SC). 2. The facts in all these appeals are identical except for the figures disputed under each of these appeals. Accordingly these appeals were heard together and disposed off through this common order. 3. The assessee is a company incorporated in United States of America (USA) and is a tax resident of USA. The assessee is part of the group i…