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2021 (7) TMI 1196 - AT - Income TaxIncome accrued in India - whether the supply of the software by the assessee company is taxable as royalty under the DTAA between the India and the Sweden or it should be a sale Simpliciter, which is taxable as business income if the assessee has a Permanent Establishment in India? - HELD THAT:- We find that the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P) Ltd [2021 (3) TMI 138 - SUPREME COURT] has held that the amounts paid by the resident Indian end-users/distributors to nonresident computer software manufacturer/suppliers as consideration for resale/use of the computer software to end-user license agreement (EULA)/distribution agreements is not for payment of the royalty for the use of copyright in the computer software and that same does not give rise to any income taxable in India. In the instant case before us also software license agreement between the assessee and the customer was for use of the software and therefore corresponding supply of the software is not in the nature of the royalty taxable in India as per DTAA between India and the Sweden. We note that the Ld. DR has also fairly conceded that the dispute is covered by the decision of the Hon’ble Supreme Court in the case cited above. Accordingly, following the decision of the Hon’ble Supreme Court (supra), we uphold the finding of the Ld. CIT(A) on the issue in dispute. The grounds raised by the revenue are accordingly dismissed.
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