2022 (10) TMI 1201 - ITAT DELHI

Income deemed to accrue or arise in India - Royalty receipt - amount received by the Appellant from Indian Customers on account of sale of software/license charges India – Israel DTAA - Distinction between royalty paid on transfer of 'copyright' and consideration for transfer of 'copyrighted article' - HELD THAT:- We find force in the contention of the ld. counsel for the assessee. The issue raised in the present appeals was also there in VERINT SYSTEM LIMITED [2023 (1) TMI 464 - ITAT DELHI] as held this issue is covered in this issue is squarely covered in favour of the assessee and against the Revenue as relying on decision of Engineering Analysis Centre of Excellence Private Limited [2021 (3) TMI 138 - SUPREME COURT] and also Intrasoft Ltd. [2013 (11) TMI 1382 - DELHI HIGH COURT]

Grant of tax credit without considering the provisions of section 240 - HELD THAT:- We find that while giving appeal effect, the AO should have considered the provisions of section 240 - We, therefore, direct the AO to consider the provisions of section 240 of the Act while giving appeal effect to our order.