2023 (3) TMI 518 - AT - Income Tax

Income taxable in India - Royalty receipt - receipt from sale of software - transfer of 'copyright' - Article 12(3) of the India-Ireland DTAA - HELD THAT:- As decided in ENGINEERING ANALYSIS CENTRE OF EXCELLENCE PRIVATE LIMITED [2021 (3) TMI 138 - SUPREME COURT] the amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/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, as a result of which the persons referred to in section 195 of the Income Tax Act were not liable to deduct any TDS under section 195 of the Income Tax Act. - Decided against revenue.

Disputed standard automated services in the nature of technical services - Whether these technical services were without human intervention - AR submitted that the question of human intervention is a question of facts and need to be examined by the Tax Authorities below but the same was not examined - HELD THAT:- The bench is of considered opinion that although reference has been made by the Tax Authorities below to have taken into consideration the aspect of questioning technical services on the basis of human intervention however, there seems to have been lack of examination of the issue by taking into account the relevant evidence and opinion of expert. Conclusion are more on basis of general perception of the nature of service. Thus, the bench is of considered opinion that this issue requires restoration to the files of the ld AO to decide the issue afresh after taking into consideration the judgment of the Hon'ble Supreme Court in CIT Vs. Bharti Cellular [2010 (8) TMI 332 - SUPREME COURT] In the light of the aforesaid the grounds in appeal of the assessee are allowed for statistical purposes.