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2024 (4) TMI 310 - AT - Income TaxAccrual of income in India - taxability of the “software” supplied to Indian affiliates - AO treated the amount as taxable u/s 56(1) of the Income Tax Act 1961 r.w.Article 23(3) of the India-USA DTAA - HELD THAT:- Having gone through the material on record, directions of the two members of the ld. DRP affirming the action of the Assessing Officer in the draft Assessment Order, the directions of the other member of the ld. DRP directing that no taxability arises, keeping in view the order of the coordinate bench of the an Tribunal in the assessee’s own case [2023 (8) TMI 875 - ITAT DELHI] and keeping in view the judgment of Hon’ble Apex Court in in the case of M/s Engineering Analysis Centre of Excellence (p) Ltd [2021 (3) TMI 138 - SUPREME COURT] we hold that the amount received on account of sublicensing of standardized software is not liable to tax. Appeal of the assessee is allowed.
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