2022 (6) TMI 344 - Income Tax

Head Note / Extract:
Income taxable in India - Royalty - income liable for taxation in India within the meaning of Article 12(3) of the India-USA Double Taxation Avoidance Agreement (‘DTAA’) - whether resale of the computer software through End User License Agreement (EULA)/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India? - HELD THAT:- Respectfully following the precedent Engineering Analysis Centre of Excellence Private Ltd. [2021 (3) TMI 138 - SUPREME COURT] expounded that consideration for the resale of the computer software through End User License Agreement (EULA)/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India - thus duly taking note that Revenue has not disputed that the facts in this care are not identical, we set aside the order of the Revenue authorities and decide the issue in favour of the assessee.