Tata Consultancy Services v. State of Andhra Pradesh

Factive Limited, Mumbai vs. Assistant Commissioner of Income Tax, (International Taxation )-2(3)(1), Mumbai

In the result, both the appeals are partly allowed

Bench: Shri Saktijit Dey & Shri Girish Agrawal & Factive Limited Asst. Cit(It)-2(3)(1) C/O. Price Waterhouse & Co. Llp 609, 6Th Floor, Kautilya Bhavan, 252, Veer Savarkar Marg, C-41, C-43, G Block, Vs. Shivaji Park, Dadar, Bandra Kurla Complex, Mumbai-400 028 Bandra (E), Mumbai Pan/Gir No. Aaccf 5745 J (Appellant) : (Respondent) : Shri Dhanesh Bafna A/W Appellant By Shri Yogesh Malpani & Ms. Kinjal Patel Respondent By : Shri Krishna Kumar (Sr. Dr) Date Of Hearing : 21.08.2025 Date Of Pronouncement : 15.09.2025 O R D E R Per Saktijit Dey: Captioned Appeals By The Assessee Are Against The Final Assessment Orders Passed U/S. 143(3) R.W.S 144C(13) Of The Income Tax Act, 1961 (‘The Act’ For Short), In Pursuance To The Directions Of Learned Dispute Resolution Panel (‘Ld. Drp' For Short) & Pertains To The Assessment Years (A.Y.) 2021-22 & 2022-23. 2. Since The Substantive Issue On Merits, Arising In The Appeals Are More Or Less Common In Both The Appeals, We Propose To Take Up Ita No. 4706/Mum/2023, Pertaining To A.Y. 2021-22, As The Lead Appeal. (A.Ys. 2021-22 & 2022-23) Factive Limited Vs. Asst. Cit(It) 3. Ground Nos. 1, 2 & 3 Are Basically On Legal Issues, Challenging The Validity Of The Final Assessment Order. At The Outset, Ld. Counsel Appearing For The Assessee Submitted That He Would Prefer To Address The Issues On Merits And, If Warranted, May Press The Legal Grounds.

…IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER & Factive Limited Asst. CIT(IT)-2(3)(1) C/o. Price Waterhouse & Co. LLP 609, 6th Floor, Kautilya Bhavan, 252, Veer Savarkar Marg, C-41, C-43, G Block, Vs. Shivaji Park, Dadar, Bandra Kurla Complex, Mumbai-400 028 Bandra (E), Mumbai PAN/GIR No. AACCF 5745 J (Appellant) : (Respondent) : Shri Dhanesh Bafna a/w Appellant by Shri Yogesh Malpani & Ms. Kinjal Patel Respondent by : Shri Krishna Kumar (Sr. DR) Date of Hearing : 21.08.2025 Date of Pronouncement : 15.09.2025 O R D E R Pe…

ACIT(Ltu-1), Mumbai vs. M/S. Tcs Ltd, Mumbai

Bench: Shri Vikas Awasthy () & Ms. Padmavathy S. ()

…ts, would not constitute the grant of an interest in cop, right under section 14(b)(i0 of the 1957 Act, thus necessitating the deduction of tax at source under section 195 of the Income-tax Act,1961. TATA CONSULTANCY SERVICES V. STATE OF ANDHRA PRADESH [2004] 271 ITR 401 (SC); [2004] 137 SIC 620 (SC) relied on. (ii) That given the definition of "royalties' contained in article 12 of the DTAAs there was no obligation on the persons mentioned in section 195 of 37 ITA 5199/Mum/2019 ITA 5904/Mum/2019 M/s TCS Ltd the Act to deduct tax at source, as the distribution agreements and end-user licence agreements did not c…

Tata Consultancy Serrvices Limited, Mumbai vs. DCIT-1, Mumbai

Bench: Shri Vikas Awasthy () & Ms. Padmavathy S. ()

…ts, would not constitute the grant of an interest in cop, right under section 14(b)(i0 of the 1957 Act, thus necessitating the deduction of tax at source under section 195 of the Income-tax Act,1961. TATA CONSULTANCY SERVICES V. STATE OF ANDHRA PRADESH [2004] 271 ITR 401 (SC); [2004] 137 SIC 620 (SC) relied on. (ii) That given the definition of "royalties' contained in article 12 of the DTAAs there was no obligation on the persons mentioned in section 195 of 37 ITA 5199/Mum/2019 ITA 5904/Mum/2019 M/s TCS Ltd the Act to deduct tax at source, as the distribution agreements and end-user licence agreements did not c…

Factiva Ltd. C/O. Price Waterhouse & Co. Lltp, Mumbai vs. Dy.Comm of Income Tax (International Taxation)-2(3)(1), Mumbai

In the result, the appeals of the assessee are allowed

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhailita Nos.1504 & 1505/Mum/2022 (A.Ys. 2018-19 & 2019-20)

…P a g e | 1 ITA Nos. 1504 & 1505/Mum/2022 Factiva limited Vs. DCIT (IT)-2(3)(1) IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA Nos.1504 & 1505/Mum/2022 (A.Ys. 2018-19 & 2019-20) Factiva Limited Vs. Deputy Commissioner of C/o Price Waterhouse & Income-tax, (IT)-2(3)(1) Co LLP 252, Veer Room No. 1614, 16th Savarkar Marg, Shivaji Floor, Air India Building, Park, Dadar, Nariman Point Mumbai – 400028 Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AACCF5745J Appellant .. Respondent Appellant by : Hira…

Factiva Ltd. C/O. Price Waterhouse & Co. Lltp, Mumbai vs. Dy.Comm of Income Tax (International Taxation)-2(3)(1), Mumbai

In the result, the appeals of the assessee are allowed

Bench: Shri Amarjit Singh & Shri Sandeep Singh Karhailita Nos.1504 & 1505/Mum/2022 (A.Ys. 2018-19 & 2019-20)

…P a g e | 1 ITA Nos. 1504 & 1505/Mum/2022 Factiva limited Vs. DCIT (IT)-2(3)(1) IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER & SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER ITA Nos.1504 & 1505/Mum/2022 (A.Ys. 2018-19 & 2019-20) Factiva Limited Vs. Deputy Commissioner of C/o Price Waterhouse & Income-tax, (IT)-2(3)(1) Co LLP 252, Veer Room No. 1614, 16th Savarkar Marg, Shivaji Floor, Air India Building, Park, Dadar, Nariman Point Mumbai – 400028 Mumbai – 400 021 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AACCF5745J Appellant .. Respondent Appellant by : Hira…

DCIT Circle 8(2) (1), Mumbai vs. M/S. . Ogilvy and Mather Pvt. Ltd, Mumbai

In the result, the In the result, the cross appeals of the assessee and Revenue of the assessee and Revenue are dismissed

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry ()

…operty is transferred asper the Copyright Act. The ratio laid down property is transferred asper the Copyright Act. The ratio laid down property is transferred asper the Copyright Act. The ratio laid down by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 (SC) holding that computer software put in a medium of disk would (SC) holding that computer software put in a medium of disk would (SC) holding that computer software put in a medium of disk would be goods may lea…

DCIT, Cir 8(2) (1), Mumbai vs. M/S. Ogilvy and Mather Pvt. Ltd, Mumbai

In the result, the In the result, the cross appeals of the assessee and Revenue of the assessee and Revenue are dismissed

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry ()

…operty is transferred asper the Copyright Act. The ratio laid down property is transferred asper the Copyright Act. The ratio laid down property is transferred asper the Copyright Act. The ratio laid down by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 (SC) holding that computer software put in a medium of disk would (SC) holding that computer software put in a medium of disk would (SC) holding that computer software put in a medium of disk would be goods may lea…

Ogilvy and Mather P. Ltd, Mumbai vs. The Asstt. CIT-8(2)(1), Mumbai

In the result, the In the result, the cross appeals of the assessee and Revenue of the assessee and Revenue are dismissed

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry ()

…operty is transferred asper the Copyright Act. The ratio laid down property is transferred asper the Copyright Act. The ratio laid down property is transferred asper the Copyright Act. The ratio laid down by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 (SC) holding that computer software put in a medium of disk would (SC) holding that computer software put in a medium of disk would (SC) holding that computer software put in a medium of disk would be goods may lea…

Ogily and Mather P. Ltd., Mumbai vs. The Asst. CIT -8(2)(1), Mumbai

In the result, the In the result, the cross appeals of the assessee and Revenue of the assessee and Revenue are dismissed

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry ()

…operty is transferred asper the Copyright Act. The ratio laid down property is transferred asper the Copyright Act. The ratio laid down property is transferred asper the Copyright Act. The ratio laid down by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 (SC) holding that computer software put in a medium of disk would (SC) holding that computer software put in a medium of disk would (SC) holding that computer software put in a medium of disk would be goods may lea…

Ogilvy and Mather P. Ltd., Mumbai vs. The Asst. CIT-8(2)(1), Mumbai

In the result, the In the result, the cross appeals of the assessee and Revenue of the assessee and Revenue are dismissed

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry ()

…operty is transferred asper the Copyright Act. The ratio laid down property is transferred asper the Copyright Act. The ratio laid down property is transferred asper the Copyright Act. The ratio laid down by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 by the Hon'ble Supreme Court in the case of TCS (2004) 271 ITR 401 (SC) holding that computer software put in a medium of disk would (SC) holding that computer software put in a medium of disk would (SC) holding that computer software put in a medium of disk would be goods may lea…

Owens Corning Insulating Systems Canada Lp, Mumbai vs. DCIT (It) Circle 3(2)(2), Mumbai

In the result, the appeal by the assessee is allowed for statistical purposes

Bench: Shri M. Balaganesh & Shri Sandeep Singh Karhail

…(Indian entity). 31. Payment for supplying skilled manpower cannot be regarded as payment towards managerial, technical and consultancy services as per dictionary meanings of these terms. Hon'ble AAR in Cholamandalam MS General Insurance Co. Ltd., reported in 309 ITR 356, took the view that, merely supplying technical, managerial or personnel with managerial skills cannot Owens Corning Insulating Systems Canada LP ITA no.461/Mum./2022 be regarded as rendering technical services by the person supply such personnel. The following were the relevant observations of Hon'ble AAR- "It is debatable whether the brackette…

Altos It Solutions and Services Inc., Mumbai vs. Deputy Commissioner of Income Tax, Mumbai

In the result, appeal filed by the assessee is allowed

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bleatos It Solutions & Services Inc V. Dcit (It)-1(1)(2) C/O. Atos India Pvt. Ltd., Scindia House, Room No. 117 Plant No. 5, Godrej & Boyce Mfg., Co. Ltd. Mumbai-400038 Pirojshanagar, Lbs Marg, Vikhroli (W) Mumbai - 400097 Pan: Aajca8823F (Appellant) (Respondent) Assessee Represented By : Shri Dhanesh Bafna Ms. Chandani Shah Kinjal Patel & Yogesh Malpani Department Represented By : Shri Richa Gulati

…, 1975, Bombay Sales Tax Act, 1959 and Central Excise Tariff Act, 1985, software is classified as goods and sales tax, excise and custom duty has been levied on it as goods. Moreover, in the case of Tata Consultancy Services v/s State of Andhra Pradesh (2004) 271 ITR 401 (SC), it has been held that a transaction of sale of computer software packages as in the assessee's case is a sale of goods within the meaning of the Andhra Pradesh General Sales Tax Act, 1957. Attention is invited to the Notification No. 11233 [F.NO. 225/192/99/ITA.II] 5.0. 452, dated 8 February 2000, issued by CBDT, wherein the CBDT has notifi…