9911796707
TMI Blog2021 (4) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Appellate Tribunal, Madras "C" Bench, Chennai, the Revenue has filed the above appeals. 2.The appeals in T.C.A.Nos.1061 to 1064 of 2015 were admitted on the following substantial questions of law: "1)Whether on the facts and in the circumstances of the case, the Tribunal was right in deleting the additions made on account of royalty income which is taxable in terms of Section 9(1)(vi) of the Income Tax Act? 2)Is not the finding of the Tribunal bad especially as per Explanation (iv) was introduced by Finance Act, 2012 with retrospective effect from 01.04.1976 clearly provided that all types of transactions in software amounted to "royalty" for the purpose of Section 9(1)(vi) of the Income Tax Act and therefore taxable? 3)Whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel appearing for the respondent - assessee. 5.Mr.Karthick Ranganathan, learned Senior Standing Counsel appearing for the appellant fairly submitted that the questions of law involved in the above appeals were already decided by the Hon'ble Supreme Court of India against the revenue and in favour of the assessee in the judgment reported in 2021 SCC OnLine SC 159 [Engineering Analysis Centre of Excellence Private Limited v. Commissioner of Income Tax and Another], wherein the Hon'ble Supreme Court held as follows: " ............... 4. The appeals before us may be grouped into four categories: i) The first category deals with cases in which computer software is purchased directly by an end-user, resident in India, from a f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... royalties" under the DTAA, makes a distinction between such royalties, no doubt in the context of technical services, and remittances for supply of computer software, which is then treated as business profits, taxable under the relevant DTAA depending upon whether there is a PE through which the assessee operates in India. This is one more circumstance to show that the Revenue has itself appreciated the difference between the payment of royalty and the supply/use of computer software in the form of goods, which is then treated as business income of the assessee taxable in India if it has a PE in India. CONCLUSION 172. Given the definition of royalties contained in Article 12 of the DTAAs mentioned in paragraph 41 of this judgment, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court of Delhi are dismissed." 6.Mr.Sandeep Bagmar.R, learned counsel appearing for the respondents submitted that in view of the ratio laid down by the Hon'ble Supreme Court in the judgment reported in 2021 SCC OnLine SC 159 (cited supra) the questions of law may be decided against the revenue and in favour of the assessee. 7.On a reading of the judgment of the Hon'ble Supreme Court, it is clear that the substantial questions of law, which are raised in the present appeals, were already decided by the Hon'ble Supreme Court against the revenue. 8.Following the ratio laid down by the Hon'ble Supreme Court in the judgment reported in 2021 SCC OnLine SC 159 [cited supra], this Court, in the appeals in T.C.A.Nos.758 of 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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