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2021 (8) TMI 635 - AT - Income TaxTaxation of income from sale of commercial off-the-shelf software - HELD THAT:- There is no specific finding by the lower authorities with regard to the licence agreement through which the assessee granted to the parties to use the software to say whether it is just the sale of software or royalty. In our opinion, it is appropriate to remit the issue in the light of judgment in Engineering Analysis Centre For Excellence Private Limited [2021 (3) TMI 138 - SUPREME COURT]. Accordingly, this issue is remitted back to the file of AO for fresh consideration and decision in accordance with law. Tax foreign exchange difference arising on account of reconciliation of total receipts of the Company with the receipts appearing in Form 26AS - HELD THAT:- Assessee adopted the rate as on 31st March to quantify the receipts appearing in Form 26AS with regard to income received in foreign exchange. According to him, Rule 115 of the I.T. Rules is not applicable to royalty income. In our opinion, the argument of the ld. AR is totally misconceived. The last date in the balance sheet of 31st March is the date of preparation of balance sheet and not for quantifying the foreign exchange rate. In this case, the assessee actually received this amount and that date itself should be considered to determine the value of the amount of tax deducted at source on royalty and not the last date of balance sheet. Being so, we are not in agreement with the contention of the ld. AR. Accordingly, the order of the CIT(Appeals) is confirmed. These grounds are dismissed.
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