“ computer software ”

CIT v. Samsung Electronics Ltd.

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.

345 ITR 494 · 2012 · High Court

461

39 Taxmann.com 88 · 2013 · High Court

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.

DIT v. Infrasoft Ltd.

269

III v. HCL Technologies Ltd.

Payments for the use of copyrighted software, without the transfer of any rights in the underlying copyright itself, do not constitute 'royalty' under the Income-tax Act or tax treaties. Such payments are often treated as business income, taxable only if a permanent establishment exists.

93 Taxmann.com 33 · 2018 · Supreme Court

245

CIT v. Synopsis International Old Ltd.

When computing the deduction available under Section 10A of the Income-tax Act, communication expenses must be excluded from the total turnover for the purpose of calculating the eligible relief.

212 Taxmann 454 · 2013 · High Court

177

CIT v. Asahi India Safety Glass Ltd.

Payments for computer software are treated as royalty income under Section 9(1)(vi) of the Income-tax Act, particularly concerning the expanded definition provided by Explanation 2 and Explanation 4.

346 ITR 329 · 2012 · High Court

129

Amway India Enterprises v. DCIT

Expenses incurred for software license purchase, development of miscellaneous software, and maintenance of websites are considered revenue in nature. Such expenses are deductible in the year they are incurred.

111 ITD 112 · 2008 · ITAT

127

Kotak Mahindra Primus Ltd. v. DDIT

Depreciation is allowable on computer software, including software licenses, at the rate of 60%.

11 SOT 578 · 2007 · ITAT

ITA 3672/DEL/2023[AY 2021-22]Status: DisposedITAT Delhi09 Feb 2024

Payments for data processing services using a mainframe computer and specialized software are not taxable as fees for the use of equipment if the Indian entity lacks independent rights or physical access to use the computer or software.

Judgments citing computer software

Adobe Systems Software Ireland Limited, Dublin (Ireland) vs. ACIT Circle 1(1)(1), International Taxation, New Delhi

Accordingly, the additions made by the Ld. AO in the impugned case deserve to be deleted on the merit for the year under consideration. Thus, the grounds raised are allowed and appeal of asseessee ...

Bench: Shri G.S. Pannu, Hon’Ble & Shri Anubhav Sharmastay Application No.52/Del/2024 (Ita No.3672/Del/2023) Assessment Year: 2021-22 & Assessment Year: 2021-22 Adobe Systems Software Ireland Vs Acit, Limited, Circle-1(1)(1), Dublin (Ireland), International Taxation, 4-6, Riverwalk, Citywest Business New Delhi. Campus, Saggart, Dublin 24, Ireland. Pan: Aahca7203M (Applicant) (Respondent) Assessee By : Shri Ravi Sharma, Advocate & Ms Shruti Khimta, Ar Revenue By : Shri Om Parkash, Sr. Dr Date Of Hearing : 09.02.2024 Date Of Pronouncement : 09.02.2024 Order Per Anubhav Sharma, Jm: Heard & Perused The Records. 2. The Stay Application In Hand Has Been Filed For The Stay Of Demand In Regard To Ay 2021-22 And, During The Course Of Argument, It Was Submitted By Ita No.52/Del/2024

For Appellant: Shri Ravi Sharma, Advocate &For Respondent: Shri Om Parkash, Sr. DR

Section 139(1)

Adobe India”) that provides marketing support services to ADIR. ADIR is primarily engaged in the distribution/supply of shrink-wrapped/off-the- shelf/electronically downloadable/ subscription-based computer software and services (“Adobe products”) outside of North America, including India. During the year under consideration, it purchased the software from third-party turnkey manufacturers/ASTCL

Deputy Commissioner of Income Tax International Taxation Circle 2 2, Bmtc Building Koramangala vs. The Oasis Centre Llc, Dubai Uae

In the result, appeal filed by the Revenue is allowed for statistical purposes

ITA 959/BANG/2023[2016-17]Status: DisposedITAT Bangalore08 Feb 2024AY 2016-17

Bench: Shri George George K & Shri Chandra Poojariit(It)A No.959/Bang/2023 Assessment Year : 2016-17 Dcit (International Taxation), Vs. M/S. The Oasis Centre Llc, Circle – 2(2), Land Mark Group West Wing Building Bengaluru. No.3, Off Hal Airport Main Road, Yamlur – 560 037, Bangalore. Pan : Aafct 2481 C Appellant Respondent Assessee By : Shri. K. R. Vasudevan, Advocate Revenue By : Ms. Neera Malhotra, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 07.02.2024 Date Of Pronouncement : 08.02.2024

For Appellant: Shri. K. R. Vasudevan, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru

Section 143(2)Section 250Section 9(1)(vi)

grouped into four categories: IT(IT)A No.959/Bang/2023 Page 4 of 8 i) The first category deals with cases in which computer software is purchased directly by an end-user, resident in India, from a foreign, non-resident supplier or manufacturer. ii) The second category of cases deals with resident ... Indian companies that act as distributors or resellers, by purchasing computer software from foreign, nonresident suppliers or manufacturers and then reselling the same to resident Indian end-users. iii) The third category concerns cases wherein the distributor happens to be a foreign, non-resident vendor, who, after purchasing software from

Infrastructure Leasing and Financial Services Ltd, Mumbai vs. Addl /Jt/ACIT/NFAC Delhi, Delhi

In the result, appeal of the assessee is partly allowed

ITA 1554/MUM/2021[2016-17]Status: DisposedITAT Mumbai31 Jan 2024AY 2016-17

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)

Section 115JSection 143(3)Section 14ASection 92B

Addition of income on toll roads of Rs.77,64,000 18 7 Disallowance of depreciation on printers, routers, 19 scanners and computer software amounting to Rs.59,32,663 8 Disallowance of brought forward losses and 20 unabsorbed depreciation of Rs.27,77,31,728 9 Disallowance of MAT credit u/s 115JAA ... Infrastructure Leasing and Financial Services Ltd. 16. In so far as ground No.19 relating to disallowance of depreciation on printers, routers, scanners and computer software amounting to Rs.59,32,663/-, it has been submitted that ld. DRP had allowed this issue in favour of the assessee that assessee is eligible

DCIT-International Taxation, Circle-1(2), Bengaluru vs. Synamedia India Private Limited, Bangalore

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

ITA 1046/BANG/2023[2016-17]Status: DisposedITAT Bangalore25 Jan 2024AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Ketan Ved, A.RFor Respondent: Shri D.K. Mishra, D.R

ITA 1025/BANG/2023[2017-18]Status: DisposedITAT Bangalore25 Jan 2024AY 2017-18

right, property, or information included and had always included the "transfer of all or any right for use or right to use a computer software". The court ruled that Explanation 4 to section 9(1)(vi) expanded the scope of royalty under Explanation 2 to section 9(1)(vi). Prior ... rights contained in sections 14(a) or 14(b) of the Copyright Act. Since the end-user only gets the right to use computer software under a non-exclusive licence, ensuring the owner continues to retain ownership under section 14(b) of the Copyright Act read with sub-section

DCIT, International Taxation, Circle-1(2), Bengaluru vs. Synamedia India Private Limited, Bengaluru

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

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Ketan Ved, A.RFor Respondent: Shri D.K. Mishra, D.R

ITA 1024/BANG/2023[2015-16]Status: DisposedITAT Bangalore25 Jan 2024AY 2015-16

DCIT, International Taxation, Circle-1(2), Bengaluru vs. Synamedia India Private Limited, Bengaluru

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(It)A Nos.1023 To 1025 & 1046/Bang/2023

For Appellant: Shri Ketan Ved, A.RFor Respondent: Shri D.K. Mishra, D.R

ITA 1023/BANG/2023[2014-15]Status: DisposedITAT Bangalore25 Jan 2024AY 2014-15

IT(IT)A Nos. 1023 to 1025 & 1046/Bang/2023 Synamedia India Pvt. Ltd., Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL "A

DCIT, International Taxation, Circle-1(2), Bengaluru vs. Synamedia India Private Limited, Bangalore

Bench: Shri Chandra Poojari & Smt. Beena Pillaiit(It)A Nos.1023 To 1025 & 1046/Bang/2023

ITA 207/PUN/2023[2016-17]Status: DisposedITAT Pune23 Jan 2024AY 2016-17

IT(IT)A Nos. 1023 to 1025 & 1046/Bang/2023 Synamedia India Pvt. Ltd., Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL "A

B Y K Asia Pacific Private Limited, India Branch, Pune vs. Assistant Commissioner of Income Tax(International Taxation), Circle-1, Pune

In the result, the appeal of assessee is dismissed

Bench: Shri S.S. Viswanethra Ravi & Shri G.D. Padmahshali

For Appellant: Shri Ketan VedFor Respondent: Shri H. Ananda

Section 143(3)Section 195Section 40Section 44B

Vide clause 11 of the agreement, the access to the computer system is provided by the either party to access any equipment, computer software, network electronic files or electronic data storage system owned or controlled by other party. 6.3 Thus, it is clearly seen that the aforesaid services

Ge Precision Healthcare Llc, Usa vs. The Assistant Commissioner of Income Tax, Circle 1(3)(1), Minto Road, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2623/DEL/2023[AY 2021-22]Status: DisposedITAT Delhi17 Jan 2024

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Ravi Sharma, AdvFor Respondent: Sh. Vizay B. Vasanta, CIT-DR

Section 143(3)Section 144C(13)Section 234ASection 234BSection 234FSection 270ASection 56Section 9(1)(vii)

instead acquired non- exclusive, non-transferable license to use the software, the transaction is essentially sale of a physical object which contains an embedded computer software, and is therefore, a sale of goods. 2. Right to reproduce a computer programme and exploit the reproduction by sale, transfer, licence ... cinematograph films or recordings on any means of reproduction for use for radio or television broadcasting, any patent, trade mark, design or model, plan, computer software programme, secret formula or process, or for information concerning industrial, commercial or scientific experience; and (b) payments of any kind received as consideration

Addl CIT RG 7(1), Mumbai vs. Piramal Enterprises Ltd (Formerly Knwon As Piramal Healthcare Ltd) (As Ultimate Successor to Nicholas Piramal India Ltd), Mumbai

ITA 5091/MUM/2010[2005-06]Status: DisposedITAT Mumbai11 Jan 2024AY 2005-06

Bench: Shri Kuldip Singh & Shri S Rifaur Rahmanassessment Year: 2005-06 M/S. Piramal Enterprises Dy. Commissioner Of Limited (Formerly Known Income Tax, As Piramal Healthcare Range-8(2)(1), Limited) (Earlier Known As Mumbai. Nicholas Piramal India Ltd.), Vs. Piramal Tower, Agastya Corporate Park, Lbs Marg, Kamani Junction, Kurla (West), Mumbai – 400 070 Pan: Aaacn4538P (Appellant) (Respondent) Assessment Year: 2005-06 Dy. Commissioner Of M/S. Piramal Enterprises Income Tax, Limited (Formerly Known Circle-8(2)(1), As Piramal Healthcare [Erstwhile Dcit Circle- Ltd.) (As Ultimate 7(1)], Successor To Nicholas Vs. Mumbai. Piramal India Ltd.), Piramal Tower, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013 Pan: Aaacn4538P (Appellant) (Respondent)

For Appellant: Shri Priyank Gala, A.RFor Respondent: Shri P.D. Chogule, (Addl. CIT) Sr. A.R

Section 28Section 40Section 45

prays that the A.O. be directed to delete aforesaid addition made on account of depreciation. GROUND VIII: Disallowance of depreciation on opening WDV of computer software: Rs.26 ,23,012/- 1. On the facts and circumstances of the case and in law, the CIT (A) erred in confirming the action ... head computers and depreciation @ 60% was allowable on the same. 3. The Appellant pray that the AO be directed to treat computer and computer software under one block namely computers and after which there will not be any cessation of block and accordingly the depreciation claimed by the Appellant

Piramal Healthcare Ltd ( Earlier Knownas Nicholas Piramal India Ltd), Mumbai vs. Addl CIT 7(1), Mumbai

ITA 3706/MUM/2010[2005-06]Status: DisposedITAT Mumbai11 Jan 2024AY 2005-06

For Appellant: Shri Priyank Gala, A.RFor Respondent: Shri P.D. Chogule, (Addl. CIT) Sr. A.R

Section 28Section 40Section 45

Crisil Ltd, Mumbai vs. Asst CIT RG 9(2)(2), Mumbai

ITA 1345/MUM/2017[2012-13]Status: DisposedITAT Mumbai10 Jan 2024AY 2012-13

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bleιτα.Νο. 7603/Mum/2012 (A.Y: 2008-09) M/S. Crisil Limited 8Th Floor, Central Avenue Road Hiranandani Business Park Opp. D-Mart, Powai Mumbai- 400076 Pan: Aaaст3151E (Appellant) V. Addl. Cit - 8(1) Aayakar Bhavan, M.K. Road Mumbai- 400020 (Respondent) Ιτα.Νο. 1564/Mum2014 (A.Y: 2009-10) M/S. Crisil Limited Central Avenue Road Hiranandani Business Park Opp. D-Mart, Powai Mumbai- 400076 Pan: Aaaст3151E (Appellant) V. Dy. Cit (Osd) – 8(1) Aayakar Bhavan, M.K. Road Mumbai- 400020 (Respondent)

ITA 997/MUM/2016[2011-12]Status: DisposedITAT Mumbai10 Jan 2024AY 2011-12

Crisil Ltd, Mumbai vs. DCIT 9(2)(2), Mumbai

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bleιτα.Νο. 7603/Mum/2012 (A.Y: 2008-09) M/S. Crisil Limited V. Addl. Cit - 8(1) 8Th Floor, Central Avenue Road Aayakar Bhavan, M.K. Road Hiranandani Business Park Mumbai- 400020 Opp. D-Mart, Powai Mumbai- 400076 (Respondent) Pan: Aaaст3151E (Appellant) Ιτα.Νο. 1564/Mum2014 (A.Y: 2009-10) M/S. Crisil Limited V. Dy. Cit (Osd) – 8(1) Central Avenue Road Aayakar Bhavan, M.K. Road Hiranandani Business Park Mumbai- 400020 Opp. D-Mart, Powai Mumbai- 400076 (Respondent) Pan: Aaaст3151E (Appellant)

ITA 843/MUM/2015[2010-11]Status: DisposedITAT Mumbai10 Jan 2024AY 2010-11

Asst CIT RG 9(2)(1), Mumbai vs. Crisil Ltd, Mumbai

In the result the issue under

Bench: Shri Aby T Varkey, Hon'Ble

ITA 1114/MUM/2015[2010-11]Status: DisposedITAT Mumbai10 Jan 2024AY 2010-11

being expenses in providing technical services or in the nature of freight, telecommunication charges or insurance attributable to delivery of article or things or computer software, from “export turnover" and "Total turnover" while computing deduction under section 10A of the Act 8. Not giving credit in full for the amount ... providing technical services outside India or in the nature of freight, telecommunication charges or insurance attributable to delivery of article or things or computer software, from “export turnover" and "Total turnover" while computing deduction under section 10A of the Act The assessee prays that expenses incurred in foreign currency

Crisil Ltd, Mumbai vs. Asst CIT RG 9(2)(2), Mumbai

In the result the issue under consideration is remitted back to the file of Assessing Officer for statistical purpose

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

ITA 1564/MUM/2014[2009-10]Status: DisposedITAT Mumbai10 Jan 2024AY 2009-10

being expenses in providing technical services or in the nature of freight, telecommunication charges or insurance attributable to delivery of article or things or computer software, from "export turnover" and "Total turnover" while computing deduction under section 10A of the Act 8. Not giving credit in full for the amount ... providing technical services outside India or in the nature of freight, telecommunication charges or insurance attributable to delivery of article or things or computer software, from "export turnover" and "Total turnover" while computing deduction under section 10A of the Act The assessee prays that expenses incurred in foreign currency

Crisil Ltd, Mumbai vs. DCIT (OSD) 8(1), Mumbai

In the result the issue under consideration is remitted back to the file of Assessing Officer for statistical purpose

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

ITA 1180/MUM/2014[2009-10]Status: DisposedITAT Mumbai10 Jan 2024AY 2009-10

being expenses in providing technical services or in the nature of freight, telecommunication charges or insurance attributable to delivery of article or things or computer software, from "export turnover" and "Total turnover" while computing deduction under section 10A of the Act 8. Not giving credit in full for the amount ... providing technical services outside India or in the nature of freight, telecommunication charges or insurance attributable to delivery of article or things or computer software, from "export turnover" and "Total turnover" while computing deduction under section 10A of the Act The assessee prays that expenses incurred in foreign currency

DCIT RG (OSD) 8(1), Mumbai vs. Crisil Ltd, Mumbai

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Bleιτα.Νο. 7603/Mum/2012 (A.Y: 2008-09) M/S. Crisil Limited 8Th Floor, Central Avenue Road Hiranandani Business Park Opp. D-Mart, Powai Mumbai- 400076 Pan: Aaaст3151E (Appellant) V. Addl. Cit - 8(1) Aayakar Bhavan, M.K. Road Mumbai- 400020 (Respondent) Ιτα.Νο. 1564/Mum2014 (A.Y: 2009-10) M/S. Crisil Limited Central Avenue Road Hiranandani Business Park Opp. D-Mart, Powai Mumbai- 400076 V. Dy. Cit (Osd) – 8(1) Aayakar Bhavan, M.K. Road Mumbai- 400020 (Respondent) Pan: Aaaст3151E (Appellant)

Section 133(6)Section 144C(5)Section 92C(2)

Crisil Ltd, Mumbai vs. Addl CIT 8(1), Mumbai

In the result the issue under consideration is remitted back to the file of Assessing Officer for statistical purpose

ITA 7603/MUM/2012[2008-09]Status: DisposedITAT Mumbai10 Jan 2024AY 2008-09

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble