TMI Blog2021 (4) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... e factual matrix are identical in present Assessment year of the assessee to that of the issues discussed in case of Engineering Analysis Centre of Excellence Pvt. Ltd.. Besides this, the issue is covered in favour of assessee in previous year as well. Hence, the appeal of the assessee is allowed. - I.T.A. No. 3013/DEL/2017 - - - Dated:- 15-4-2021 - SHRI R. K. PANDA ACCOUNTANT MEMBER And MS SUCHITRA KAMBLE , JUDICIAL MEMBER Appellant by : Sh. Nageshwar Rao , Adv Mrs. Deepika Aggarwal , Adv Respondent by : Dr. Prabha Kant , CIT DR ORDER PER SUCHITRA KAMBLE , JM This appeal is filed by the assessee against order dated 10/02/2017 passed by Income Tax Department, Singapore, for assessment year 2014-15. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon ble DRP erred in holding that the Appellant grants right in the copyright of the software licenses, instead of treating the grant of software licenses as copyrighted article without any rights in the copyright. The learned AO and the Hon ble DRP erred in holding that the term use or right to use does not presuppose commercial exploitation of software The learned AO and the Hon ble DRP erred in treating that sale of software licenses by the Assessee involved consideration for use or right to use any process assuming that computer program is process The learned AO and the Hon ble DRP erred in not following the binding decisions of the jurisdictional Hon ble Delhi High Court which squarely covered the aforesaid is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 242,52,89,282/- on sale of licence software should be treated as receipts received on account of sale of licence software as royalty. As held in earlier years. The Assessing Officer made addition of ₹ 242,52,89,282/- towards royalty income at 10% on gross basis as per DGTAA between India and Singapore. 4. Being aggrieved by the assessment order, the assessee filed appeal before us. 5. The Ld. AR submitted that the issue in present Assessment Year is already covered by the decision of the Hon ble Apex Court in case of Engineering Analysis Centre of Excellence Pvt. Ltd. Vs. CIT (Civil Appeal No 8733_8744 of 2018 order dated 2/3/2021. The Ld. AR also relied upon the decision of the Tribunal in assessee s own case for Ay 2013- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India, as a result of which the persons referred to in section 195 of the Income Tax Act were not liable to deduct any TDS under section 195 of the Income Tax Act. The answer to this question will apply to all four categories of cases enumerated by us in paragraph 4 of this judgment. 170. The appeals from the impugned judgments of the High Court of Karnataka are allowed, and the aforesaid judgments are set aside. The ruling of the AAR in Citrix Systems (AAR) (supra) is set aside. The appeals from the impugned judgments of the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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