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2018 (2) TMI 99 - AT - Income TaxReceipts from sale of software taxable as "Royalty" - application for constitution of Special Bench - Held that:- As per the list of 21 cases placed on record wherein in the hands of recipients / deductees, the High Courts / Tribunals have held that receipts from sale of software were not taxable as "Royalty‟. The issue was settled by the High Courts and various benches of the Tribunal and did not warrant constitution of Special Bench. If the application for constitution of Special Bench of the revenue be accepted by the Bench then all 21 cases where in hands of deductees the Hon'ble High Courts / Tribunal has already held that income from sale of software is not royalty will be affected. Thus if the application for constitution of Special Bench of the Revenue be accepted by the Bench then 44 Special Benches need to be constituted, as there are 44 separate agreements entered by the assessee for which payment was made for purchase of software. Since, some agreements contain purchase of independent software and some of the agreement contains purchase of software alongwith hardware, every agreement would have to be examined for which 44 Special Benches would have to be constituted. Application for constitution of Special Bench made by the Revenue ought to be rejected and the appeals be heard by the regular Bench of the Hon'ble Tribunal. We direct accordingly.
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