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2015 (5) TMI 708 - AT - Income TaxRoyalty u/s 9(1)(vi) - Nature of amount received towards supply of software by the Parent company to (non-resident) to Intel Technology India Private Limited on account of software expenses - DTAA between India and the USA - Held that:- In the absence of any evidence to the effect that the assessee has supplied software license to the Indian company and the Indian company was obliged under the agreement to reimburse the expenses of such software license, we are not inclined to accept the contention of the assessee that it is only reimbursement of expenses and not chargeable to tax in India. As regards the alternative contention that the said receipt is not chargeable to tax as royalty, we find that the issue is squarely covered against the assessee by the decision of the Hon’ble Karnataka High Court in the case of Samsung Electronics Co. Ltd ( 2011 (10) TMI 195 - KARNATAKA HIGH COURT) wherein held that payments to non-resident software supplies for purchase of shrink-wrapped software was in the nature of royalty - Decided against assesse. Re-imbursements of relocation expenses - Held that:- As find that the assessee has filed sample evidence relating to April and May 2004 in support of its claim of relocation and related expenses. From these details, it is clear that the Indian company has incurred expenses on account of employees who are deputed to Indian company. Whether these reimbursements are cost to cost basis and whether these also form part of the fees for technical services needs to be examined by the AO in the light of the evidence produced by the assessee. As the additional evidence filed before us goes to the root of the matter, we are inclined to admit the same and remand the same to the file of the assessing authority with a direction to reconsider the issue de novo. The assessee may file all the required details before the assessing authority. - Decided in favour of assesse for statistical purposes.
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