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2023 (3) TMI 1307 - AT - Income TaxIncome deemed to accrue or arise in India - consideration received from ancillary support services as Fee for technical service ('FTS') as per India- United Kingdom of Great Britain and Norther Ireland ('UK') Double taxation Avoidance Agreement ('DTAA') and as per the Income-Tax Act, 1961 - HELD THAT:- We notice that a similar issue has been considered by the coordinate Bench in the case of LLC [2021 (8) TMI 1370 - ITAT BANGALORE] as held receipts by way of sale of software licenses and provision of ancillary support services connected with the sale of software products cannot be assessed as royalty/FTS income in the hands of the assessee. Accordingly, we set aside the order passed by the AO on this issue. We notice that in assessee’s case [2021 (7) TMI 615 - ITAT BANGALORE] the consideration received is towards sale of software and other ancillary support services which fact has not been disputed by the lower authorities. We are therefore of the considered view that the decision of the apex Court in the case of Engineering Analysis [2021 (3) TMI 138 - SUPREME COURT] and the above decision of the coordinate Bench are clearly applicable in assessee’s case. Accordingly, we set aside the order passed by the AO and delete the addition made. Decided in favour of assessee.
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