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2021 (9) TMI 1083 - AT - Income TaxAccrual of Income in India - Royalty - right to use the software - overriding effect to the DTAA - whether the assessee who is a non-resident and tax resident of Singapore in terms of the India-Singapore Double Taxation Avoidance Agreement (DTAA) who acts as a distributor of computer software and providing ancillary services in the Asia Pacific region is taxable in respect of receipts on sale of computer software to Indian distributors/end users along with ancillary services? - HELD THAT:- The terms of licence agreement were already examined by the DRP and from reading of the terms of the agreements, it is clear that there was no right to use the computer software. In other words, the terms of agreement are identical to the case decided in the case of Engineering Analysis Centre of Excellence Pvt. Ltd. [2021 (3) TMI 138 - SUPREME COURT] The overriding effect to the DTAA vis-à-vis provisions of the Act have also been discussed in the submissions of the Assessee before AO and DRP and in the order of the AO and the DRP - plea for remanding of the case to the AO/TPO cannot be accepted in the facts and circumstances of the present case. Accordingly, following the earlier orders of the Tribunal, we hold that income of the assessee which was brought to tax by the Revenue authorities cannot be brought to tax and the same is directed to be deleted. - Appeal of the assessee is allowed.
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