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2025 (6) TMI 1647 - SCH - Income TaxIncome deemed to accrue or arise in India - Royalty receipts - consideration received by the assessee from various customers on account of licensing of Customer Relationship Management CRM software - India-Singapore DTAA - assessee is a tax resident of Singapore income in question as derived from the subscription fee which the assessee receives from customers in India for providing CRM related services - As decided by HC 2024 (2) TMI 1396 - DELHI HIGH COURT Explanation 4 in essence introduces a deeming fiction and includes transfer of all or any rights for use or to use a computer software including by way of a license irrespective of the medium through which such right is transferred. Significantly the DTAA does not bring within its sweep a right for use or a right of use of a computer software. ITAT correctly held that the consideration received by the assessee from various customers on account of licensing of Customer Relationship Management CRM software is not royalty income within the meaning of Article 12(3) of the IndiaSingapore Double Taxation Avoidance Agreements DTAA. Appeal decided in favour of assessee. HELD THAT - After having heard the learned counsel appearing for the petitioner we find no error in the impugned judgment of the High Court. The Special Leave Petition is accordingly dismissed.
The Supreme Court, with Hon'ble Justices Abhay S. Oka and Ujjal Bhuyan presiding, after hearing counsel for the petitioner and respondent, "condoned delay" and found "no error in the impugned judgment of the High Court." Consequently, the Special Leave Petition was dismissed, and any pending applications were disposed of.
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