Tata Consultancy Services v. State of Andhra Pradesh

271 ITR 401Supreme Court of India2004#381 most cited

What is Tata Consultancy Services v. State of Andhra Pradesh authority for?

The sale of 'canned software' in physical form is the sale of a copyrighted article and constitutes 'goods,' distinct from the underlying copyright. This case provides foundational principles for distinguishing copyrighted works from copyrighted articles and for what qualifies as 'production or manufacturing of goods or articles' under tax laws.

231

judgments rely on this decision, according to BharatTax’s citation analysis of 368,155 Indian tax judgments — from 2010 to 2025.

Also referred to as

Tata Consultancy Services v. State of Andhra Pradesh · TCS v State of AP · 271 ITR 401 · copyright vs copyrighted article · software as goods · royalty income · manufacturing or production of goods · section 32AC · section 32(1)(iia) · electricity generation

Also reported as

141 Taxmann 132137 STC 620

Sections most often in play

Section 143(3)Section 153ASection 153DSection 32(1)(iia)Section 32ACSection 37Section 40A(9)Section 10B(8)

Issues it is cited on

section 274(2)section 243section 245hacasus omissussection 245csettlement applicationsection 245d(4)section 153(4)copyrighted articlesection 144basection 244section 245d

Judgments citing Tata Consultancy Services v. State of Andhra Pradesh

Lintas India P.Ltd, Mumbai vs. DCIT (TDS) 2(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 3803/MUM/2015[2012-13]Status: DisposedITAT Mumbai18 Jan 2017AY 2012-13

Bench: Shri C.N. Prasad, Jm & Shri N.K. Pradhan, Am

For Appellant: Smt. Neha BarveFor Respondent: Shri. Rajesh Ojha
Section 194CSection 194JSection 201(1)Section 3Section 9(1)(vii)

…ounting purposes, not copywrited software and, therefore, it will not fall within the definition of “Royalty” as defined in Sec. 194J of the Act. He placed reliance on the following decisions in support of his contentions :- 1. Tata Consultancy Services Ltd.(271 ITR 401) 2. DIT Vs. IRCSSON A.B (TS-769-HC-2011) (Del HC) 3. Motorola Ink Vs. DCIT 96 J1 (Delhi ITAT) 4. Sonata Information Tech. Lmt. Vs. DCIT (TS 286-ITAT 2012) (Mumbai ITAT) 8. The Ld. DR vehemently supports the order of the authorities below. 9. We have heard rival submissions, perused the order of the authorities below and the decision of the coo…

Mol Corporation, Gurgaon vs. Addl. DIT, New Delhi

In the result appeal of the assessee for the assessment year

ITA 6089/DEL/2012[2007-08]Status: DisposedITAT Delhi26 Sept 2016AY 2007-08

Bench: Shri H.S.Sidhu & Shri Prashant Maharishi

For Appellant: Sh. Nageswar Rao, AdvFor Respondent: Sh. Dheeraj Batnagar, CIT
Section 143Section 144CSection 147Section 9(1)(vi)

…Citrix Systems (343 ITR 1 (AAR No. 822 of 2009). 4.8 That on facts and in law, the Hon'ble DRP has erred in confirming the conclusion drawn by Learned AO in the Draft assessment order by distinguishing from the decisions in cases of Tata Consultancy Services (271 ITR 401) (SC), Ericsson A. B. and Metapath (ITA 504/2007) (Del HC), Nokia Networks OY (ITA 512 / 2007) (Del HC) and various other Tribunal / AAR rulings relied on by the Appellant. Page 6 of 52 4.9 That on facts and in law, the Learned AO has erred in observing that even grant of one right in respect of a copyright or work would amount to transfer of th…

DCIT, New Delhi vs. M/S Xansa India Ltd., Noida

In the result appeal of the revenue is dismissed

ITA 2283/DEL/2011[2004-05]Status: DisposedITAT Delhi26 Sept 2016AY 2004-05

Bench: Smt Diva Singh & Shri Prashant Maharishi

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Ankur Garg, CIT DR
Section 10ASection 40Section 40a

…nce may be placed in this regard on the following decisions: • CIT vs. Tejaji Farasram Kharawalla Ltd.(1968) 67 ITR 95 (SC) • Van Oord : 189 Taxman 232 (Del-HC) • CIT vs. Fortis Health care Ltd.: 181 Taxman 257 (Del-HC) • Cholamandalam General Insurance Ltd.:.309 ITR 356 (AAR) DCIT V Xansa India Limited ITA No. 2283/Del/2011 (Assessment Year: 2004-05), ITA No. 3671/Del/2013 (Assessment Year: 2005-06), ITA No. 3673/Del/2013 (Assessment Year: 2006-07), ITA No. 628/Del/2013 (Assessment Year: 2009-10) Xansa India Limited V ITO ITA NO 2577 & 4698/Del/2011/12 A Y 2004-05 and 2008-09 Page 43 of 91 • CIT vs. Industria…

Gates India Pvt. Ltd., New Delhi vs. ITO (TDS), New Delhi

In the result, appeal filed by the assessee stands allowed

ITA 813/DEL/2015[2012-13]Status: DisposedITAT Delhi26 Jul 2016AY 2012-13

Bench: Shri S. V. Mehrotra & Smt. Beena A. Pillai

For Appellant: Shri K. L. Chandok, CAFor Respondent: Shri Rajsh Kumar, Sr. DR
Section 195Section 201Section 9Section 9(1)(vi)

…goods) purchased from salesforce.com, Singapore on furnishing Form No. 15 CA or 15 CB as Royalty income taxable in India u/s 9(1 )(vi) of the Act is totally bad in law in view of the following judgments: (a) Tata Consultancy Services Vs. State Andhra Pradesh 271 ITR 401 (05.11.2004) (S.C.) (b) Ericsson A.B. and others ( Delhi High Court) (c) Infrasoft Ltd. (ITA 1034/2009) (Delhi High Court) (d) Adit (International Taxation) Hyderabad Vs Batronics India Ltd. ITAT Hyderabad 'A' Bench ITA n 9181 Hyd. 2010 announced on 27.01.2014 (e) Larsen & Tourbo Ltd.- IT AT 'B' Bench Ahmedabad ITA No. 732 (Ahd.) 2013 announced o…

Galatea Ltd, Mumbai vs. DCIT (It) RG 2(3)(2), Mumbai

In the result, the assessee’s appeal for A

ITA 5434/MUM/2015[2012-13]Status: DisposedITAT Mumbai29 Jun 2016AY 2012-13

Bench: Shri Jason P. Boaz & Shri Saktijit Daym/S. Galatea Ltd. Dcit (International Taxation) P.O. 1156, Industrial Vs. Range 2(3)(2) Area, Dalton, Israel Mumbai Pan - Aadcg8396D Appellant Respondent

For Appellant: Shri Bomi Daruwala &For Respondent: Shri Jasbir Chouhan
Section 143(3)Section 144CSection 144C(1)Section 144C(13)Section 144C(5)Section 9(1)(vi)Section 90(2)

…independently. This software merely facilitates the functioning of the equipment and is an integral part thereof. On these facts, it would be useful to refer to the judgment of the Supreme Court in TATA Consultancy Services Vs. State of Andhra Pradesh (2004) 271 ITR 401 (SC), wherein the Apex Court held that software which is incorporated on a media would be goods, and therefore, liable to sales tax. Following discussion in this behalf is required to be noted:-"In our view, the term "goods" as used in Article 366(12) of the Constitution of India and as defined under the said Act are very wide and include all typ…

M/S Aspect Software Inc., New Delhi vs. DCIT (International Taxation), New Delhi

In the result, the appeal filed by the assessee stands disposed off accordingly

ITA 1842/DEL/2016[2011-12]Status: DisposedITAT Delhi27 Jun 2016AY 2011-12

Bench: Shri S. V. Mehrotra & Smt. Beena A. Pillai

For Appellant: Shri Roshni Chopra, AdvFor Respondent: Shri Anuj Arora, CIT DR
Section 143(2)Section 143(3)Section 144C(13)Section 253Section 9

…bsence of the PE of the Appellant in India. 2.9 That on facts and in law, the Ld. AO/ DRP have erred in not relying and distinguishing the decisions of the Hon'ble Apex Court and the jurisdictional High Court in the cases of Tata Consultancy Services (2004) (271 ITR 401) (SC), Infrasoft Ltd. (264 CTR 239), Ericsson A.B. and Metapath (343 ITR 370) (Del HC), Nokia Networks OY (TS-700-HC-2012) (Del. HC) on the one side and relying on the decisions of other courts and AAR in the cases of Samsung Electronics [(203 taxman 477) (Kar. HC) / (TS-696-HC-2011)], Millenium IT Software [(338 ITR 391) (AAR) / (TS-585- AAR-201…

Infor Global Solutions Barneveld) Bv ( Now Known As Infor (Barneveld) Bv), Hyderabad vs. DDIT (It) Cir 3(1), Mumbai

The appeals of the revenue stands dismissed and that of the assessee stands allowed

ITA 777/MUM/2013[2008-09]Status: DisposedITAT Mumbai13 Jun 2016AY 2008-09

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…SSA Global Technologies (I) P Ltd (Formerly known as Information Global Solutions (I) Pvt Ltd. ITA 3049/Mum/2011 INFOR Global Solutions (Barneveld) BV ITA 776/Mum/2013 ITA 777/Mum/2013 S.No. Case Law Citation 1 Tata Consultancy Services vs State of AP [2004] 271 ITR 401(SC) 2 Samsung Electronics Co Ltd. v ITO [2005] 276 ITR 1(Bang-AT) 3 Hewlett Packard (India) Pvt Ltd v ITO (International Taxation) [2006] 5 SOT 660 (Bang) 4 Sonata Information Technology Ltd v DCIT [2006] 7 SOT 465 (Bom) 5 Sonata Information Technology Ltd v ADIT [2006] 103 ITD 324 (Bang) 6 ACC Ltd v CC [2001] 128 ELT 21 (SC) 7 IMP Power Ltd v IT…

Infor Global Solutions Barneveld) Bv, Hyderabad vs. DDIT (It) Cir 3(1), Mumbai

The appeals of the revenue stands dismissed and that of the assessee stands allowed

ITA 776/MUM/2013[2007-08]Status: DisposedITAT Mumbai13 Jun 2016AY 2007-08

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…SSA Global Technologies (I) P Ltd (Formerly known as Information Global Solutions (I) Pvt Ltd. ITA 3049/Mum/2011 INFOR Global Solutions (Barneveld) BV ITA 776/Mum/2013 ITA 777/Mum/2013 S.No. Case Law Citation 1 Tata Consultancy Services vs State of AP [2004] 271 ITR 401(SC) 2 Samsung Electronics Co Ltd. v ITO [2005] 276 ITR 1(Bang-AT) 3 Hewlett Packard (India) Pvt Ltd v ITO (International Taxation) [2006] 5 SOT 660 (Bang) 4 Sonata Information Technology Ltd v DCIT [2006] 7 SOT 465 (Bom) 5 Sonata Information Technology Ltd v ADIT [2006] 103 ITD 324 (Bang) 6 ACC Ltd v CC [2001] 128 ELT 21 (SC) 7 IMP Power Ltd v IT…

ITO (It) TDS 3, Mumbai vs. Ssa Global Technologies (I) P.Ltd ( Formerly Knwona As Infor Global Solutions (I) P.Ltd), Mumbai

The appeals of the revenue stands dismissed and that of the assessee stands allowed

ITA 3049/MUM/2011[2007-08]Status: DisposedITAT Mumbai13 Jun 2016AY 2007-08

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…SSA Global Technologies (I) P Ltd (Formerly known as Information Global Solutions (I) Pvt Ltd. ITA 3049/Mum/2011 INFOR Global Solutions (Barneveld) BV ITA 776/Mum/2013 ITA 777/Mum/2013 S.No. Case Law Citation 1 Tata Consultancy Services vs State of AP [2004] 271 ITR 401(SC) 2 Samsung Electronics Co Ltd. v ITO [2005] 276 ITR 1(Bang-AT) 3 Hewlett Packard (India) Pvt Ltd v ITO (International Taxation) [2006] 5 SOT 660 (Bang) 4 Sonata Information Technology Ltd v DCIT [2006] 7 SOT 465 (Bom) 5 Sonata Information Technology Ltd v ADIT [2006] 103 ITD 324 (Bang) 6 ACC Ltd v CC [2001] 128 ELT 21 (SC) 7 IMP Power Ltd v IT…

ADIT (It) 3(2), Mumbai vs. Baan Global B.V. Now Known As Information Global Solution ( Barneveld) Bv, Mumbai

The appeals of the revenue stands dismissed and that of the assessee stands allowed

ITA 7048/MUM/2010[2006-07]Status: DisposedITAT Mumbai13 Jun 2016AY 2006-07

Bench: Shri G S Pannu & Shri Amit Shukla

Section 143(3)

…SSA Global Technologies (I) P Ltd (Formerly known as Information Global Solutions (I) Pvt Ltd. ITA 3049/Mum/2011 INFOR Global Solutions (Barneveld) BV ITA 776/Mum/2013 ITA 777/Mum/2013 S.No. Case Law Citation 1 Tata Consultancy Services vs State of AP [2004] 271 ITR 401(SC) 2 Samsung Electronics Co Ltd. v ITO [2005] 276 ITR 1(Bang-AT) 3 Hewlett Packard (India) Pvt Ltd v ITO (International Taxation) [2006] 5 SOT 660 (Bang) 4 Sonata Information Technology Ltd v DCIT [2006] 7 SOT 465 (Bom) 5 Sonata Information Technology Ltd v ADIT [2006] 103 ITD 324 (Bang) 6 ACC Ltd v CC [2001] 128 ELT 21 (SC) 7 IMP Power Ltd v IT…

Systematics Infotech P.Ltd, Mumbai vs. ITO 7(2)(4), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 6468/MUM/2012[2007-08]Status: DisposedITAT Mumbai18 May 2016AY 2007-08

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं /I.Ta No. 6468/Mum/2012 ("नधा"रण वष" / Assessment Year: 2009-10 M/S. Systematics Infotech The Ito -7(2)(4), बनाम/ Pvt. Ltd., Mumbai Vs. 249, Kirpa Niwas, Next To Premier High School, Sion East, Mumbai-400 022 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aafcs 2583Q .. (अपीलाथ" /Appellant) (""यथ" / Respondent) अपीलाथ" ओर से/ Appellant By: Shri Keral S. Shah ""यथ" क" ओर से/Respondent By: Shri Vishwas Jadhav

For Appellant: Shri Keral S. ShahFor Respondent: Shri Vishwas Jadhav
Section 143(3)Section 194JSection 40Section 9

…n where the assessee purchased and sold software. In other words, assessee has traded in software products. The Hon’ble High Court after considering the decision of the Hon’ble Supreme Court in the case of Tata Consultancy Services Vs State of Andhra Pradesh (271 ITR 401) held that payments made for purchase of software as a product in the Indian market cannot be considered as Royalty observing as under: “In the cases where an Assessee acquires the right to use a software, the payment so made would amount to royalty. However, in the cases where the payments are made for purchase of software as a product, the con…

Indian Petrochemicals Corporation Ltd ( Merged With Reliance Industries Ltd), Mumbai vs. ITO (TDS) (Ltu), Mumbai

ITA 3219/MUM/2012[2006-07]Status: DisposedITAT Mumbai18 May 2016AY 2006-07

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…Ltd. & Others stock and shares, growing crops, grass....' This definition of 'goods' thus includes all types of movable properties, whether tangible or intangible. The Hon‘ble Supreme Court in the case of ―Tata Consultancy Services vs State of Andhra Pradesh‖ 271 ITR 401 (2004), has considered computer software as 'goods' and stated that notwithstanding the fact that computer software is intellectual property, whether it is conveyed in diskettes, floppy, magnetic tapes or CD ROMs, whether canned (shrink-wrapped) or uncanned (customized), whether it comes as part of the computer or independently, whether it is bra…

Reliance Corporate It Park Ltd ( Formerly Relene Petrochemicals Ltd, Navi Mumbai vs. DDIT (It) RG 2(1), Mumbai

ITA 2728/MUM/2012[2007-08]Status: DisposedITAT Mumbai18 May 2016AY 2007-08

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…Ltd. & Others stock and shares, growing crops, grass....' This definition of 'goods' thus includes all types of movable properties, whether tangible or intangible. The Hon‘ble Supreme Court in the case of ―Tata Consultancy Services vs State of Andhra Pradesh‖ 271 ITR 401 (2004), has considered computer software as 'goods' and stated that notwithstanding the fact that computer software is intellectual property, whether it is conveyed in diskettes, floppy, magnetic tapes or CD ROMs, whether canned (shrink-wrapped) or uncanned (customized), whether it comes as part of the computer or independently, whether it is bra…

DDIT(It)-2(1), Mumbai vs. Reliance Industrial Infrastructure Ltd., Mumbai

ITA 3354/MUM/2011[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…Ltd. & Others stock and shares, growing crops, grass....' This definition of 'goods' thus includes all types of movable properties, whether tangible or intangible. The Hon‘ble Supreme Court in the case of ―Tata Consultancy Services vs State of Andhra Pradesh‖ 271 ITR 401 (2004), has considered computer software as 'goods' and stated that notwithstanding the fact that computer software is intellectual property, whether it is conveyed in diskettes, floppy, magnetic tapes or CD ROMs, whether canned (shrink-wrapped) or uncanned (customized), whether it comes as part of the computer or independently, whether it is bra…

DDIT (It)2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 4593/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…Ltd. & Others stock and shares, growing crops, grass....' This definition of 'goods' thus includes all types of movable properties, whether tangible or intangible. The Hon‘ble Supreme Court in the case of ―Tata Consultancy Services vs State of Andhra Pradesh‖ 271 ITR 401 (2004), has considered computer software as 'goods' and stated that notwithstanding the fact that computer software is intellectual property, whether it is conveyed in diskettes, floppy, magnetic tapes or CD ROMs, whether canned (shrink-wrapped) or uncanned (customized), whether it comes as part of the computer or independently, whether it is bra…

DDIT (It)2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 4590/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…Ltd. & Others stock and shares, growing crops, grass....' This definition of 'goods' thus includes all types of movable properties, whether tangible or intangible. The Hon‘ble Supreme Court in the case of ―Tata Consultancy Services vs State of Andhra Pradesh‖ 271 ITR 401 (2004), has considered computer software as 'goods' and stated that notwithstanding the fact that computer software is intellectual property, whether it is conveyed in diskettes, floppy, magnetic tapes or CD ROMs, whether canned (shrink-wrapped) or uncanned (customized), whether it comes as part of the computer or independently, whether it is bra…

DDIT (It)2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 4587/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…Ltd. & Others stock and shares, growing crops, grass....' This definition of 'goods' thus includes all types of movable properties, whether tangible or intangible. The Hon‘ble Supreme Court in the case of ―Tata Consultancy Services vs State of Andhra Pradesh‖ 271 ITR 401 (2004), has considered computer software as 'goods' and stated that notwithstanding the fact that computer software is intellectual property, whether it is conveyed in diskettes, floppy, magnetic tapes or CD ROMs, whether canned (shrink-wrapped) or uncanned (customized), whether it comes as part of the computer or independently, whether it is bra…

DDIT (It) 2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 3582/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…Ltd. & Others stock and shares, growing crops, grass....' This definition of 'goods' thus includes all types of movable properties, whether tangible or intangible. The Hon‘ble Supreme Court in the case of ―Tata Consultancy Services vs State of Andhra Pradesh‖ 271 ITR 401 (2004), has considered computer software as 'goods' and stated that notwithstanding the fact that computer software is intellectual property, whether it is conveyed in diskettes, floppy, magnetic tapes or CD ROMs, whether canned (shrink-wrapped) or uncanned (customized), whether it comes as part of the computer or independently, whether it is bra…

DDIT (It) 2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 3579/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…Ltd. & Others stock and shares, growing crops, grass....' This definition of 'goods' thus includes all types of movable properties, whether tangible or intangible. The Hon‘ble Supreme Court in the case of ―Tata Consultancy Services vs State of Andhra Pradesh‖ 271 ITR 401 (2004), has considered computer software as 'goods' and stated that notwithstanding the fact that computer software is intellectual property, whether it is conveyed in diskettes, floppy, magnetic tapes or CD ROMs, whether canned (shrink-wrapped) or uncanned (customized), whether it comes as part of the computer or independently, whether it is bra…

DDIT (It) 2(1), Mumbai vs. Reliance Industries Ltd, Mumbai

ITA 3578/MUM/2010[]Status: DisposedITAT Mumbai18 May 2016

Bench: Shri Sanjay Garg & Shri Ashwani Taneja

Section 9(1)(vi)

…Ltd. & Others stock and shares, growing crops, grass....' This definition of 'goods' thus includes all types of movable properties, whether tangible or intangible. The Hon‘ble Supreme Court in the case of ―Tata Consultancy Services vs State of Andhra Pradesh‖ 271 ITR 401 (2004), has considered computer software as 'goods' and stated that notwithstanding the fact that computer software is intellectual property, whether it is conveyed in diskettes, floppy, magnetic tapes or CD ROMs, whether canned (shrink-wrapped) or uncanned (customized), whether it comes as part of the computer or independently, whether it is bra…