Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 494 - HC - Income TaxIssuance of a certificate u/s 197 at “nil” rate - petitioner claims that it is a tax resident of the United States of America (USA) - petitioner also states, that it has no business connection or a permanent establishment in India - HELD THAT:- Petitioner entered into a Software License Agreement with Reliance Jio Infocomm Limited [“RJIL”]. The petitioner’s case is, that in terms of the aforementioned Software Licensing Agreement, it granted a non-exclusive and non-transferable license to RJIL, to use and operate the software concerning Transmission Control Protocol and Video Optimisation Solution in the territory of India. As consideration, the petitioner receives licensing fees from RJIL. Inter-alia, the petitioner’s claim is, that RJIL has only been allowed to use the licence software and that the rights qua the same have not been transferred. It is, thus, the petitioner’s submission, that it is not liable to tax qua the license fee received from RJIL. Petitioner, has also placed reliance on the judgment of Engineering Analysis Centre of Excellence Private Limited [2021 (3) TMI 138 - SUPREME COURT]. Respondents/revenue cannot but accept, that the concerned officer who passed the impugned order would have to take into account, the observations made by DRP in its order dated 17.05.2022, as also consider the impact of the judgment rendered by the Supreme Court in Engineering Analysis. In our view, the aforementioned aspects will require consideration. Accordingly, the impugned order is set aside, with the direction that the application filed by the petitioner will be decided afresh.The concerned authority will hear the Authorized Representative (AR) of the petitioner. Petitioner will appear before the concerned authority on 16.01.2023, at 11:00 AM.
|