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2024 (3) TMI 1258 - AT - Income TaxAccrual of income in India - Addition on account of royalty - receipt from Indian customer for subscription to database, sale of e-journals and membership fees - India-US tax treaty - HELD THAT:- During the course of appellate proceedings before us the ld. Counsel has referred various decision of the ITAT on the similar issue and identical fact for earlier years in the case of the assessee itself wherein held that subscription received from customer in India in respect of subscription to database and subscription to journals was not taxable as royalty. With the assistance of ld. representative we have perused the decision of ITAT in the case of the assessee itself for assessment year 2016-17 which was further followed in the other assessment year wherein the ITAT in [2019 (4) TMI 1818 - ITAT MUMBAI] held that subscription fees received by the assessee from its customers for providing access to database and journals were not royalty as customers did not acquire copyright, therefore, such fees were not liable to be taxed in India. Thus following the decision of the ITAT we direct the AO to delete the addition made on account of royalty. Accordingly, ground no. 1 & 2 are allowed.
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