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2020 (11) TMI 1049 - ITAT DELHIIncome deemed to accrue or arise in India - Royalty receipts - India US DTAA - HELD THAT:- As formed a belief that on the basis of granting of rights, the assessee got the exclusive rights with regard to Microsoft Products in exchange of stocks to MS Corp. Due to this, the intellectual property rights owner is Gracemac Corp. and any payments arising in India in light of provisions of Paragraph 7(b), Article 12 of the India-US tax treaty, are taxable as royalties. Forming this belief, the Assessing Officer held that not only 35% or 40% of the amount but total amount of USD 155,646,892 is taxable as royalty @ 15% as provided in Article 12 of India US DTAA. Before us,the assessee, at the very outset, stated that the entire action by the Assessing Officer has been decided in favour of the assessee and against the revenue by the Tribunal in the case of Mocrosoft Corporation for AY.s 1997-98 to 1999-2000 in the case of MOL Corporation for A.Y 2011-12 [2018 (10) TMI 1939 - ITAT DELHI] and further in the case of MOL Corporation for A.Ys 2007-08 to 2010-11 [2022 (3) TMI 447 - ITAT DELHI]. Copies of the orders of the Tribunal have been supplied to us. Per contra, the ld. DR, relying upon the orders of the lower authorities, however conceded that the impugned dispute has been decided in favour of the assessee by the Tribunal in the earlier years. - Decided in favour of assessee.
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