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2022 (7) TMI 275 - AT - Income TaxIncome accrued in India - sale of software product - royalty receipts - India - USA DTAA - HELD THAT:- As decided in INFRASOFT LTD. [2013 (11) TMI 1382 - DELHI HIGH COURT] and ENGINEERING ANALYSIS CENTRE OF EXCELLENCE PRIVATE LIMITED [2021 (3) TMI 138 - SUPREME COURT] the sale of software product does not give rise to the royalty income. In the light of aforesaid, since there are no distinguishing facts with regard to present Assessment Year than the Assessment Year 2012-13 [2022 (4) TMI 966 - ITAT DELHI], we allow the Ground No. 2 and its Sub Grounds of the assessee. Subscription to cloud base service as royalty - Functional aspect of cloud base service while holding - India - USA DTAA - HELD THAT:- The very same issue regarding the cloud service in assessee’s own case for the AY 2012- 13 [2022 (4) TMI 966 - ITAT DELHI], came up for consideration before the Co-ordinate Bench of the Tribunal wherein by following the ratio laid down in the case of M/s. Salesforce.com Singapore Pte. [2022 (4) TMI 327 - ITAT DELHI] and also the decision of Savvis Communication Corporation [2016 (5) TMI 635 - ITAT MUMBAI] and the Chennai Tribunal decision in the case of ACIT Vs/. Vishwak Solutions Pvt. Ltd. [2015 (4) TMI 794 - ITAT CHENNAI] held that the authorities fallen in error in considering the subscription received towards cloud serviced to be royalty income.
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