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2024 (1) TMI 158 - ITAT DELHIAccrual of income in India - royalty receipts for sale of software - AO treated the receipts earned by the assessee through sale of software as taxable u/s 9(1)(vi) as well as under Article 12(3) of India-Singapore DTAA - as argued AO failed to appreciate that the Appellant is a mere distributor of the software and that ownership of the copyright continues to remain with the original owner of the software, throughout the term of the agreement - HELD THAT:- We find that the AO has read and interpreted the clauses of the agreement wrongly and selectively. While the AO has concluded that the agreements between the assessee and the end user/ distributor give credence to the fact that the terms of software sales by the assessee to its distributor/ end users in India are clearly distinguishable from the case of Engineering Analysis Centre of Exellence Pvt. Ltd. [2021 (3) TMI 138 - SUPREME COURT] the assessee has contended that the AO has not read/ interpreted the agreements between the assessee and the distributor/ end user in the proper context. Having gone through the various clauses of the distributor agreement, we hereby hold that the subject matter is squarely covered by the judgment of Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited (Supra). Appeal of the assessee is allowed.
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