Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 464 - AT - Income TaxRoyalty receipt - amount received by the Appellant on account of sale of software/license charges - India- Israel DTAA - non-exclusive, non-transferable and terminable license has been granted by Appellant to Wipro - as argued sale of such ‘off shelf software by the Appellant is merely a sale of copyrighted article and has not resulted in transfer of any right in relation to a 'copyright' embedded in the said software and therefore, payments received by the Appellant do not constitute 'royalty' - as per assessee same has been treated as business income, but not liable to tax in absence of Permanent Establishment (‘PE’) in India invoking Article 12 read with Article 7 of the ‘India-Israel - HELD THAT:- We hold that this issue is covered in favour of the assessee by the decision of Engineering Analysis Centre of Excellence Private Limited [2021 (3) TMI 138 - SUPREME COURT] and also by the decision of Intrasoft Ltd [2013 (11) TMI 1382 - DELHI HIGH COURT] Accordingly, ground nos.1 to 5 are allowed.
|