Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 729 - ITAT MUMBAITreatment of Business income as Royalty income - Article 12 of India-Ireland DTAA - no fixed place of business or permanent establishment in India - assessee sells subscriptions to its Indian customers/subscribers, on the basis of which they are able to access Gartner’s research products over the internet from its data server which is located outside India in lieu of subscription fees - A.O observed that the assessee as the copyright owner of the research products exploited copyright protection vigorously. HELD THAT:- Tribunal while disposing off the appeal of the assessee for A.Y 2007-08 [2014 (1) TMI 1281 - ITAT MUMBAI] , placed reliance on the decision of the Hon’ble High Court of Karnataka in the case of Wipro Ltd. Vs. ITO [2011 (10) TMI 473 - KARNATAKA HIGH COURT] had concluded, that the subscription fees received by the assessee would constitute ‘royalty’. Admittedly, the issue and also the facts and the circumstances in the present appeal of the assessee remains the same as were involved in its appeals for the preceding years. We uphold the view taken by the CIT(A) that the A.O had rightly concluded that the subscription fees of ₹ 90,10,34,288/- received by the assessee from its Indian customers/subscribers was to be assessed as ‘royalty’ as per the provisions of Sec. 9(1)(vi) of the Act r.w Article 12 of the India-Ireland DTAA and subjected to tax @10% on gross basis as per Article 12 of the India-Ireland DTAA. - appeal filed by the assessee is dismissed
|