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2021 (8) TMI 996 - AT - Income TaxRoyalty income - Assessment of sale proceeds received on sale of software licenses as “Royalty income” - DTAA provisions - whether the payments received by non-resident suppliers for selling software licenses are royalty or not? - HELD THAT:- As per the decision rendered by Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Pvt. Ltd. [2021 (3) TMI 138 - SUPREME COURT] sale proceeds received by the assessee on sale of software licenses cannot be categorized as “Royalty” within the meaning of provisions of DTAA. Accordingly, we set aside the order passed by Ld. CIT(A) on this issue and direct the A.O. to delete the addition made as “royalty” income. Chargeability of interest u/s 234B - CIT(A) has given relief to the assessee - HELD THAT:- As addition relating to sale of software has been deleted by us in the earlier paragraph. According to A.R., it is not liable to pay advance tax at all, since the TDS credit available with it is more than tax payable by it. In view of the above, we are of the view that no interference in the order passed by Ld. CIT(A) on this issue is called for.
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