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“computer software”

Chapter III - Incomes Not IncludedSection 10BSection 10B Explanation 2 / Section 80HHF951 judgments

The decision most relied on for computer software is Engineering Analysis Centre of Excellence (P) Ltd. v. CIT (432 ITR 471), cited in 914 judgments on BharatTax.

Leading authorities on computer software

Engineering Analysis Centre of Excellence (P) Ltd. v. CIT
432 ITR 471 · 2021 · Supreme Court
914
citing judgments

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.

CIT v. Samsung Electronics Ltd.
345 ITR 494 · 2012 · High Court
461
citing judgments

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.
39 Taxmann.com 88 · 2013 · High Court
269
citing judgments

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.

III v. HCL Technologies Ltd.
93 Taxmann.com 33 · 2018 · Supreme Court
245
citing judgments

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.

CIT v. Synopsis International Old Ltd.
212 Taxmann 454 · 2013 · High Court
177
citing judgments

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.

CIT v. Asahi India Safety Glass Ltd.
346 ITR 329 · 2012 · High Court
129
citing judgments

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.

Amway India Enterprises v. DCIT
111 ITD 112 · 2008 · ITAT
127
citing judgments

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

Kotak Mahindra Primus Ltd. v. DDIT
11 SOT 578 · 2007 · ITAT
99
citing judgments

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

DCIT, Circle- 3(1)(2), Intl. Taxation, New Delhi vs. Siemens Product Lifecycle Management Software Inc., Gurgaon

In the result, the appeal of the Revenue is dismissed

ITA 3413/DEL/2018[2013-14]Status: DisposedITAT Delhi08 Feb 2022AY 2013-14

Bench: Shri G.S. Pannu, Hon’Ble & Shri C.N. Prasadasstt. Year: 2013-14

For Appellant: Shri Salil Kapoor, AdvocateFor Respondent: Shri Munesh Kumar, CIT DR
Section 143(3)Section 144C(3)(b)Section 9

Technologies Ltd, Satyam Computer Services Ltd, Terex India P Ltd & Quest Engineering, which is essentially receipts with respect to the use of computer software by the end users together with or without technical support and hence is in nature of Royalty (of Rs. 5,86,12,564) taxable ... along with other clauses imposing restriction on rights of transfer, further sale, exchange, making of back-up copies etc. in respect of use of computer software. The assessee offered income amounting to Rs. 66,03,57,410/- from agreements with Siemens Industry Software Pvt. Ltd., Textron India Pvt. Ltd., Geometric

Harman Connected Services Corporation India Private Limited (Formerly Known As M/S Core Objects India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-3(1)(2), Bangalore

In the result, appeal of the assessee is treated as partly allowed

ITA 682/BANG/2016[2011-12]Status: DisposedITAT Bangalore07 Feb 2022AY 2011-12

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaran

For Appellant: Smt. Tanmayee Rajkumar, AdvocateFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 143(3)Section 92C

proposing to disallow (i) provision for rent claimed by the IT(TP)A Nos.682, 632/Bang/2016 Page 3 of 27 assessee; and (ii) depreciation on computer software claimed by the assessee, for non deduction of tax at source. Aggrieved, the assessee filed its objections before the Dispute Resolution Panel (DRP), which ... directions dated 28.12.2015 granted marginal relief to the assessee in respect of the TP adjustment, while deleting the proposal to disallow depreciation claimed on computer software. The proposal to disallow provision for rent came to be upheld. Pursuant to the directions of the DRP, the AO passed the final assessment

Power Exchange India Ltd, Mumbai vs. Dy CIT-14(2)(2), Mumbai

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

ITA 769/MUM/2021[2013-14]Status: DisposedITAT Mumbai04 Feb 2022AY 2013-14
For Appellant: Mr. Sunil Nahta.ARFor Respondent: Mr. S.G. Menon. Sr. DR
Section 143(1)Section 143(2)Section 143(3)Section 271(1)(c)Section 32(1)Section 32(1)(ii)

circumstances of the case and in law, the Ld. CIT(A) failed to appreciate that the Ld. AO erred in restricting the claim of Computer Software, Computer Automation, IT Consultancy Charges and Computer Trading Application and Computer Systems forming part of the block of assets of "Computer including computer software ... statements find that the assessee has revenue from operations of Rs. 7,60,64,677/- and the assessee has claimed the depreciation @ 60% on computer software, computer automation, computer trading and computer systems, and IT consultancy charges. Whereas the A.O has called for explanations on claim of depreciation

M/S Robert Bosch Engineering and Business Solutions Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal filed by assessee stands allowed as indicated above and the appeal filed by revenue stands dismissed

ITA 608/BANG/2016[2011-12]Status: DisposedITAT Bangalore02 Feb 2022AY 2011-12

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 608/Bang/2016 Assessment Year : 2011-12 M/S. Robert Bosch The Deputy Engineering & Business Commissioner Of Solutions Pvt. Ltd., Income Tax, #123, Industrial Layout, Large Tax Payers Unit, Hosur Road, Koramangala, Circle 1, Bangalore – 560095. Vs. Bangalore. Pan: Aaacr7108R Appellant Respondent & It(Tp)A No. 445/Bang/2016 Assessment Year : 2011-12 (By Revenue) : Shri Percy Padiwala, Sr. Assessee By Advocate : Shri Sumer Singh Meena, Cit Revenue By Dr (Osd) Date Of Hearing : 20-12-2021 Date Of Pronouncement : 02-02-2022 Order Per Beena Pillaipresent Cross Appeals Are Filed By Assessee As Well As Revenue Against The Final Assessment Order Dated 28.01.2016 By The Ld.Dcit, Ltu, Circle -1, Bangalore U/S. 143(3) R.W.S. 144C Of The Act For Assessment Year 2011-12. In Revenue’S Appeal, The Following Grounds Are Raised. “1. The Directions Of Drp Is Opposed To Law & Facts Of The Case.

Section 10ASection 143(3)Section 144CSection 14ASection 80J

erred in not accepting the Appellant's contention that expenditure incurred in foreign currency need not be reduced from Export proceeds from export of Computer Software while computing deduction under section 10A of the Act, since Clause (iv) in Explanation 2 to Sec 10A contemplates such exclusion of expenditure ... erred in not adjudicating the Appellant's contention that expenditure incurred in foreign currency need not be reduced from Export proceeds from export of Computer Software while computing deduction under section 10A of the Act, since Clause (iv) in Explanation 2 to Sec 10A contemplates such exclusion of expenditure

DCIT, Bangalore vs. M/S Robert Bosch Engineering & Business Solutions Private Limited, Bangalore

In the result, the appeal filed by assessee stands allowed as indicated above and the appeal filed by revenue stands dismissed

ITA 445/BANG/2016[2011-12]Status: DisposedITAT Bangalore02 Feb 2022AY 2011-12

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiit(Tp)A No. 608/Bang/2016 Assessment Year : 2011-12 M/S. Robert Bosch The Deputy Engineering & Business Commissioner Of Solutions Pvt. Ltd., Income Tax, #123, Industrial Layout, Large Tax Payers Unit, Hosur Road, Koramangala, Circle 1, Bangalore – 560095. Vs. Bangalore. Pan: Aaacr7108R Appellant Respondent & It(Tp)A No. 445/Bang/2016 Assessment Year : 2011-12 (By Revenue) : Shri Percy Padiwala, Sr. Assessee By Advocate : Shri Sumer Singh Meena, Cit Revenue By Dr (Osd) Date Of Hearing : 20-12-2021 Date Of Pronouncement : 02-02-2022 Order Per Beena Pillaipresent Cross Appeals Are Filed By Assessee As Well As Revenue Against The Final Assessment Order Dated 28.01.2016 By The Ld.Dcit, Ltu, Circle -1, Bangalore U/S. 143(3) R.W.S. 144C Of The Act For Assessment Year 2011-12. In Revenue’S Appeal, The Following Grounds Are Raised. “1. The Directions Of Drp Is Opposed To Law & Facts Of The Case.

Section 10ASection 143(3)Section 144CSection 14ASection 80J

erred in not accepting the Appellant's contention that expenditure incurred in foreign currency need not be reduced from Export proceeds from export of Computer Software while computing deduction under section 10A of the Act, since Clause (iv) in Explanation 2 to Sec 10A contemplates such exclusion of expenditure ... erred in not adjudicating the Appellant's contention that expenditure incurred in foreign currency need not be reduced from Export proceeds from export of Computer Software while computing deduction under section 10A of the Act, since Clause (iv) in Explanation 2 to Sec 10A contemplates such exclusion of expenditure

Nagravision Sa, Gurgaon vs. DCIT Circle-2(2)(2) Internatioanl Taxation, New Delhi

In the result the Appeal filed by the Appellant is partly allowed for statistical purposes

ITA 140/DEL/2021[2017-18]Status: DisposedITAT Delhi31 Jan 2022AY 2017-18

Bench: Sh. R.K. Panda & Sh. N. K. Choudhry(Through Video Conferencing) Assessment Year: 2017-18 M/S. Nagravision S.A. Vs Dcit C/O. Ernst & Young Llp, Circle-2(2)(2), Golf View Corporate International Taxation, Tower,Tower B, Sector 42, New Delhi Golf Course Road, Gurugram Pan : Aadcn6048B (Appellant) (Respondent) Appellant By Smt. Ananya Kapoor, Adv. Respondent By Ms. Naina Soin Kapil, Cit Date Of Hearing: 06/01/2022 Date Of Pronouncement: 31/01/2022 Order Per N. K. Choudhry, Jm:

Section 143(3)Section 144CSection 154Section 270Section 270ASection 9

favour of the Revenue. 4. The appeals before us may be grouped into four categories: 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 7 purchasing computer software from foreign, nonresident suppliers or manufacturers and then reselling the same to resident Indian end-users. iii) iii) The third category concerns cases wherein the distributor happens to be a foreign, non-resident vendor

Dy CIT Central Cir-2(3), Mumbai vs. Amit Avinash Bhosale, Pune

In the result, appeal filed by the Revenue for the A

ITA 166/MUM/2021[2015-16]Status: DisposedITAT Mumbai11 Jan 2022AY 2015-16

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Vijay MehtaFor Respondent: Ms. Shailja Rai
Section 10(38)Section 127(2)Section 132Section 153A

only. The decisions as relied upon by the learned Counsel also supports our view. Even though the Rules have provided rate of depreciation on computer software, but that does not lead to any kind of drawing legal inference that all the softwares have to be characterised as capital asset. Thus ... expenditure and whether it resulted an enduring advantage to a particular assessee. It is nobody's case that assessee is dealing with computer softwares or is in the business of any related services. Rather it uses specific customized software, which is specific to its banking activities

Dy. CIT CC- 2(3), Mumbai vs. Amit Avinash Bhosale, Pune

In the result, appeal filed by the Revenue for the A

ITA 165/MUM/2021[2018-19]Status: DisposedITAT Mumbai11 Jan 2022AY 2018-19

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Vijay MehtaFor Respondent: Ms. Shailja Rai
Section 10(38)Section 127(2)Section 132Section 153A

only. The decisions as relied upon by the learned Counsel also supports our view. Even though the Rules have provided rate of depreciation on computer software, but that does not lead to any kind of drawing legal inference that all the softwares have to be characterised as capital asset. Thus ... expenditure and whether it resulted an enduring advantage to a particular assessee. It is nobody's case that assessee is dealing with computer softwares or is in the business of any related services. Rather it uses specific customized software, which is specific to its banking activities

Dy CIT CC-2(3), Mumbai vs. Avinash Nivrutti Bhosale, Pune

In the result, appeal filed by the Revenue for the A

ITA 123/MUM/2021[2015-16]Status: DisposedITAT Mumbai11 Jan 2022AY 2015-16

Bench: Shri S. Rifaur Rahman, Hon'Ble & Shri Pavan Kumar Gadale, Hon'Ble

For Appellant: Shri Vijay MehtaFor Respondent: Ms. Shailja Rai
Section 10(38)Section 127(2)Section 132Section 153A

only. The decisions as relied upon by the learned Counsel also supports our view. Even though the Rules have provided rate of depreciation on computer software, but that does not lead to any kind of drawing legal inference that all the softwares have to be characterised as capital asset. Thus ... expenditure and whether it resulted an enduring advantage to a particular assessee. It is nobody's case that assessee is dealing with computer softwares or is in the business of any related services. Rather it uses specific customized software, which is specific to its banking activities

Serco India Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

In the result, the appeal of the assessee is allowed

ITA 1460/DEL/2014[2009-10]Status: DisposedITAT Delhi10 Jan 2022AY 2009-10

Bench: Sh. Saktijit Deydr. B. R. R. Kumarita No. 1460/Del/2014 : Asstt. Year : 2009-10 Serco India Pvt. Ltd., Vs Dcit, 6Th Floor, Tower-B, Building No. 8, Circle-2, Dlf Cyber City, Phase-Ii, Gurgaon Gurgaon (Appellant) (Respondent) Pan No. Aajcs6704P Assessee By : Sh. Suraj Bhan Nain, Ca Revenue By : Sh. M. Baranwal, Sr. Dr Date Of Hearing: 04.01.2022 Date Of Pronouncement: 10.01.2022

For Appellant: Sh. Suraj Bhan Nain, CAFor Respondent: Sh. M. Baranwal, Sr. DR
Section 10ASection 143(3)Section 144C(13)Section 234BSection 271(1)(c)Section 92C

purposes of computing deduction under section 10A of the Act. 80. The assessee company was involved in the business of development and export of computer software in an Undertaking registered under Software Technology Park of India and claimed deduction u/s 10A of the Act. The assessee has made total export ... company has incurred an expenditure of Rs. 5,82,813/- in foreign exchange as data communication charges, which were considered attributable to delivery of computer software outside India. The Assessing Officer reduced these expenses from export turnover and calculated the amount of export turnover

Kotak Mahindra Bank Limited (As Successor in Business of Erstwhile Ing Vysya Bank Limited), Bangalore vs. Commissioner of Income Tax (Appeals)-I, Bangalore

In the result, the appeal of the revenue is dismissed and the grounds of appeal of the assessee remanded by the High Court for fresh consideration are allowed

ITA 748/BANG/2011[2001-02]Status: DisposedITAT Bangalore03 Jan 2022AY 2001-02

Bench: Shri N.V. Vasudevanand Shri B. R. Baskaran

For Appellant: Shri. S. Ananthan, CAFor Respondent: Shri. Sumeer Singh Meena, JCIT(DR)(ITAT), Bengaluru
Section 115JSection 143(3)

package or a CAD program. Other broad classes of application software include real-time software. business software, scientific and engineering software, embedded software. personal computer software and artificial intelligence software". 13. It has been contended by the learned counsel for the assessee before us that the difference between the system ... regarded as capital expenditure. Accordingly, depreciation was allowed to the assessee as per the Act and rules on the expenditure incurred on computer software. Alternatively, the AO held that since the benefit of the expenditure would be available to the assessee for atleast 10 years, the assessee can deduction

ACIT, Bangalore vs. M/S the Vysya Bank Ltd., Bangalore

In the result, the appeal of the revenue is dismissed and the grounds of appeal of the assessee remanded by the High Court for fresh consideration are allowed

ITA 733/BANG/2011[2001-02]Status: DisposedITAT Bangalore03 Jan 2022AY 2001-02

Bench: Shri N.V. Vasudevanand Shri B. R. Baskaran

For Appellant: Shri. S. Ananthan, CAFor Respondent: Shri. Sumeer Singh Meena, JCIT(DR)(ITAT), Bengaluru
Section 115JSection 143(3)

package or a CAD program. Other broad classes of application software include real-time software. business software, scientific and engineering software, embedded software. personal computer software and artificial intelligence software". 13. It has been contended by the learned counsel for the assessee before us that the difference between the system ... regarded as capital expenditure. Accordingly, depreciation was allowed to the assessee as per the Act and rules on the expenditure incurred on computer software. Alternatively, the AO held that since the benefit of the expenditure would be available to the assessee for atleast 10 years, the assessee can deduction

M/S.Nds Limited, Bangalore vs. Asst. Commissioner of Income Tax, Bangalore

In the result, the appeal filed by assessee stands allowed

ITA 364/BANG/2017[2007-2008]Status: DisposedITAT Bangalore28 Dec 2021AY 2007-2008

Bench: Shri. B.R. Baskaran & Smt. Beena Pillaiit(It)A No. 364/Bang/2017 Assessment Year : 2007-08 M/S. Synamedia Ltd. [Formerly Known As ‘Nds Limited’], The Assistant C/O. M/S. Synamedia India Pvt. Commissioner Of Ltd., Income Tax, Block 9A & 9B, Pritech Park, International Survey No. 51-64/4, Taxation, Sarjapur Outer Ring Road, Vs. Circle – 1(2), Bellandur Village, Bangalore. Bangalore – 560 103. Pan: Aabcn2524L Appellant Respondent Assessee By : Shri Sharath Rao, Advocate : Shri Dilip, Standing Revenue By Counsel For Dept. Date Of Hearing : 16-12-2021 Date Of Pronouncement : 28-12-2021

For Appellant: Shri
Section 143(3)Section 147Section 234B

Supreme Court’s judgment in the case of Engineering Analysis (supra) wherein Hon’ble Supreme Court specifically dealt with cases wherein computer software is affixed on to hardware as an integrated unit/equipment by foreign non-resident supplier to Indian distributors or end users. This is the fourth category of cases ... buyer is purchasing the intellectual property and not the media i.e. the paper or cassette or disc or CD. Thus a transaction sale of computer software is clearly a sale of “goods” within the meaning of the term as defined in the said Act. The term “all materials, articles

M/S Euronet Services India Pvt Lt D, Bangalore vs. Deputy Commissioner of Income Tax Circle-2(1)(2), Bangalore

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

ITA 329/BANG/2017[2012-13]Status: DisposedITAT Bangalore27 Dec 2021AY 2012-13

Bench: Shri George George K. & Shri B.R. Baskaranit(Tp)A No.329/Bang/2017 Assessment Year : 2012-13

For Appellant: Shri K.R. Vasudevan, A.RFor Respondent: Shri Sanjay Kumar, D.R
Section 10ASection 143(3)

forex loss of Rs.30,031/-. The AO held that these expenses would fall under the category of delivery of articles or tools or computer software outside India or expenses incurred in providing the technical services outside India as per explanation 1(i) to Section 10AA. Accordingly he took the view

M/S Moonfrog Labs Private Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-4(1)(2), Bangalore

In the result, the appeal filed by the assessee stands allowed for statistical purposes

ITA 3066/BANG/2018[2015-16]Status: DisposedITAT Bangalore14 Dec 2021AY 2015-16

Bench: Shri. Chandra Poojari & Smt. Beena Pillaiassessment Year : 2015-16 M/S. Moonfrog Labs Pvt. Ltd., 16/3, Level-3, The Assistant Adarsh Yellavarthy Centre, Commissioner Of Cambridge Road, Income Tax, Ulsoor Jogupalya, Circle – 4(1)(2), Bangalore – 560008. Vs. Bangalore. Pan: Aaicm9563H Appellant Respondent : Shri Padamchand Khincha, Assessee By Ca : Shri Sankar Ganesh .K, Jcit Revenue By (Dr) Date Of Hearing : 21-10-2021 Date Of Pronouncement : 14-12-2021 Order Per Beena Pillaipresent Appeal By The Assessee Has Been Filed By Assessee Against The Assessment Order Dated 18.12.2017 Passed By The Acit, Circle – 4 (1)(2), Bangalore Relating To Assessment Year 2015-16. The Grounds Raised By The Assessee Are As Under: “1. General Ground 1.1. The Learned Assistant Commissioner Of Income Tax, Circle- 4(1)(2), Bangalore (`A0') Has Erred In Passing The Assessment Order Under Section 143(3) Of The Income Tax Act, 1961 (`The Act') In The Manner Passed By Him & The Commissioner Of Income Tax- (Appeals)-4 (`Cit(A)') Has Erred In Confirming The Said Assessment Order. The Said Order Being Bad In Law Is Liable To Be Quashed.

For Respondent: Shri Padamchand Khincha
Section 143(2)Section 143(3)Section 195Section 195(2)Section 40Section 9(1)(vi)

been narrated as under:- 4. The appeals before us may be grouped into four categories: (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.3 (ii) The second category of cases ... deals with resident Indian companies that act as distributors or resellers, by purchasing computer software from foreign, non-resident suppliers or manufacturers and then reselling the same to resident Indian end-users.4 (iii) The third category concerns cases wherein the distributor happens to be a foreign, non-resident vendor

Mountain Trail Foods Private Limited, Bangalore vs. Principal Commissioner of Income Tax, Bengaluru-4, Bengaluru

In the result, all the miscellaneous applications are allowed and all the appeals filed by the assessee are treated as allowed for statistical purposes

ITA 99/BANG/2021[2015-16]Status: HeardITAT Bangalore13 Dec 2021AY 2015-16

Bench: Shri B.R Baskaran & Shri Beena Pillai

For Appellant: Shri Padamchand Khincha, C.AFor Respondent: Smt. Priyadarshini Besaganni, JCIT (DR)
Section 248

been narrated as under:- 4. The appeals before us may be grouped into four categories: (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.3 (ii) The second category of cases ... deals with resident Indian companies that act as distributors or resellers, by purchasing computer software from foreign, non-resident suppliers or manufacturers and then reselling the same to resident Indian end-users.4 (iii) The third category concerns cases wherein the distributor happens to be a foreign, non-resident vendor

Nokia Solutions and Networks Oy., Gurgaon vs. DCIT, International Taxation, Circle-2(2)(2), New Delhi

In the result, all the appeals of the assessee are allowed

ITA 5121/DEL/2019[2015-16]Status: DisposedITAT Delhi07 Dec 2021AY 2015-16

Bench: Sh. Kul Bharatdr. B. R. R. Kumar(Through Video Conferencing) Ita No. 1000/Del/2015 : Asstt. Year : 2010-11 M/S Nokia Solutions & Networks Oy, Vs Addl. Cit, Fi-02610, Karaporti-3, Espoo, International Taxation Finland-2058530-6 Range-2(2) & New Delhi C/O Srbc & Associates, Llp, Golf View, Corporate Tower-B Sector-42, Gurgaon (Appellant) (Respondent) Pan No. Aadcn2300E Ita No. 1116/Del/2017 : Asstt. Year : 2008-09 Ita No. 1117/Del/2017 : Asstt. Year : 2009-10 Ita No. 6704/Del/2017 : Asstt. Year : 2013-14 Ita No. 7419/Del/2018 : Asstt. Year : 2014-15 M/S Nokia Solutions & Networks Oy, Vs Dcit, Fi-02610, Karaporti-3, Espoo, International Taxation Finland-2058530-6 Range-2(2)(2) & New Delhi C/O Srbc & Associates, Llp, Golf View, Corporate Tower-B Sector-42, Gurgaon-122011 (Appellant) (Respondent) Pan No. Aadcn2300E

For Appellant: Sh. Deepak Chopra, AdvFor Respondent: Sh. Sunil Kumar, CIT DR
Section 142(1)Section 143(2)Section 143(3)

settled the long-running contentious issue over how payments made by Indian customers to non-resident suppliers for the use or resale of computer software should be characterised, providing much-needed tax certainty on the issue. 39. The Hon’ble Apex Court held, “168. Given the definition of royalties contained ... these cases. 169.Our answer to the question posed before us, is that the amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright

M/S Nokia Solutions and Networks Oy vs. DCIT, International Taxation, New Delhi

In the result, all the appeals of the assessee are allowed

ITA 1117/DEL/2017[2009-10]Status: DisposedITAT Delhi07 Dec 2021AY 2009-10

Bench: Sh. Kul Bharatdr. B. R. R. Kumar(Through Video Conferencing) Ita No. 1000/Del/2015 : Asstt. Year : 2010-11 M/S Nokia Solutions & Networks Oy, Vs Addl. Cit, Fi-02610, Karaporti-3, Espoo, International Taxation Finland-2058530-6 Range-2(2) & New Delhi C/O Srbc & Associates, Llp, Golf View, Corporate Tower-B Sector-42, Gurgaon (Appellant) (Respondent) Pan No. Aadcn2300E Ita No. 1116/Del/2017 : Asstt. Year : 2008-09 Ita No. 1117/Del/2017 : Asstt. Year : 2009-10 Ita No. 6704/Del/2017 : Asstt. Year : 2013-14 Ita No. 7419/Del/2018 : Asstt. Year : 2014-15 M/S Nokia Solutions & Networks Oy, Vs Dcit, Fi-02610, Karaporti-3, Espoo, International Taxation Finland-2058530-6 Range-2(2)(2) & New Delhi C/O Srbc & Associates, Llp, Golf View, Corporate Tower-B Sector-42, Gurgaon-122011 (Appellant) (Respondent) Pan No. Aadcn2300E

For Appellant: Sh. Deepak Chopra, AdvFor Respondent: Sh. Sunil Kumar, CIT DR
Section 142(1)Section 143(2)Section 143(3)

settled the long-running contentious issue over how payments made by Indian customers to non-resident suppliers for the use or resale of computer software should be characterised, providing much-needed tax certainty on the issue. 39. The Hon’ble Apex Court held, “168. Given the definition of royalties contained ... these cases. 169.Our answer to the question posed before us, is that the amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright

M/S Nokia Solutions and Networks Oy vs. DCIT, International Taxation, New Delhi

In the result, all the appeals of the assessee are allowed

ITA 1116/DEL/2017[2008-09]Status: DisposedITAT Delhi07 Dec 2021AY 2008-09

Bench: Sh. Kul Bharatdr. B. R. R. Kumar(Through Video Conferencing) Ita No. 1000/Del/2015 : Asstt. Year : 2010-11 M/S Nokia Solutions & Networks Oy, Vs Addl. Cit, Fi-02610, Karaporti-3, Espoo, International Taxation Finland-2058530-6 Range-2(2) & New Delhi C/O Srbc & Associates, Llp, Golf View, Corporate Tower-B Sector-42, Gurgaon (Appellant) (Respondent) Pan No. Aadcn2300E Ita No. 1116/Del/2017 : Asstt. Year : 2008-09 Ita No. 1117/Del/2017 : Asstt. Year : 2009-10 Ita No. 6704/Del/2017 : Asstt. Year : 2013-14 Ita No. 7419/Del/2018 : Asstt. Year : 2014-15 M/S Nokia Solutions & Networks Oy, Vs Dcit, Fi-02610, Karaporti-3, Espoo, International Taxation Finland-2058530-6 Range-2(2)(2) & New Delhi C/O Srbc & Associates, Llp, Golf View, Corporate Tower-B Sector-42, Gurgaon-122011 (Appellant) (Respondent) Pan No. Aadcn2300E

For Appellant: Sh. Deepak Chopra, AdvFor Respondent: Sh. Sunil Kumar, CIT DR
Section 142(1)Section 143(2)Section 143(3)

settled the long-running contentious issue over how payments made by Indian customers to non-resident suppliers for the use or resale of computer software should be characterised, providing much-needed tax certainty on the issue. 39. The Hon’ble Apex Court held, “168. Given the definition of royalties contained ... these cases. 169.Our answer to the question posed before us, is that the amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright

M/S. Nokia Solutions and Networks Oy, Gurgaon vs. Addl. CIT, New Delhi

In the result, all the appeals of the assessee are allowed

ITA 1000/DEL/2015[2010-11]Status: DisposedITAT Delhi07 Dec 2021AY 2010-11

Bench: Sh. Kul Bharatdr. B. R. R. Kumar(Through Video Conferencing) Ita No. 1000/Del/2015 : Asstt. Year : 2010-11 M/S Nokia Solutions & Networks Oy, Vs Addl. Cit, Fi-02610, Karaporti-3, Espoo, International Taxation Finland-2058530-6 Range-2(2) & New Delhi C/O Srbc & Associates, Llp, Golf View, Corporate Tower-B Sector-42, Gurgaon (Appellant) (Respondent) Pan No. Aadcn2300E Ita No. 1116/Del/2017 : Asstt. Year : 2008-09 Ita No. 1117/Del/2017 : Asstt. Year : 2009-10 Ita No. 6704/Del/2017 : Asstt. Year : 2013-14 Ita No. 7419/Del/2018 : Asstt. Year : 2014-15 M/S Nokia Solutions & Networks Oy, Vs Dcit, Fi-02610, Karaporti-3, Espoo, International Taxation Finland-2058530-6 Range-2(2)(2) & New Delhi C/O Srbc & Associates, Llp, Golf View, Corporate Tower-B Sector-42, Gurgaon-122011 (Appellant) (Respondent) Pan No. Aadcn2300E

For Appellant: Sh. Deepak Chopra, AdvFor Respondent: Sh. Sunil Kumar, CIT DR
Section 142(1)Section 143(2)Section 143(3)

settled the long-running contentious issue over how payments made by Indian customers to non-resident suppliers for the use or resale of computer software should be characterised, providing much-needed tax certainty on the issue. 39. The Hon’ble Apex Court held, “168. Given the definition of royalties contained ... these cases. 169.Our answer to the question posed before us, is that the amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright