TMI Blog2020 (11) TMI 1049X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of USD 155,646,892 is taxable as royalty @ 15% as provided in Article 12 of India US DTAA. Before us,the assessee, at the very outset, stated that the entire action by the Assessing Officer has been decided in favour of the assessee and against the revenue by the Tribunal in the case of Mocrosoft Corporation for AY.s 1997-98 to 1999-2000 in the case of MOL Corporation for A.Y 2011-12 [ 2018 (10) TMI 1939 - ITAT DELHI] and further in the case of MOL Corporation for A.Ys 2007-08 to 2010-11 [ 2022 (3) TMI 447 - ITAT DELHI] . Copies of the orders of the Tribunal have been supplied to us. Per contra, the ld. DR, relying upon the orders of the lower authorities, however conceded that the impugned dispute has been decided in favour o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to subsidiaries of MS Corp, and exclusive right to license any third party to directly grant customers the right to reproduce Microsoft software products for internal use. 3. On the same date the assessee entered into a License Agreement with Microsoft Operations Pte. Limited, Singapore ( MS Ops ), wherein Gracemac has granted MS Ops the: non-exclusive license to manufacture Microsoft products in Singapore; non-exclusive license to distribute the products so manufactured to retailers or to MS Corp or to subsidiaries of MS Corp; and non-exclusive right to license or sublicense the right to reproduce Microsoft software products to certain end users (large account customers) for their internal use. 4. This agreement w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs the assessee was required to furnish the following details: (i) Copy of agreement between Gracemac Corporation and Microsoft Corporation relevant to F.Y. 2004-05. (ii) Copy of license agreement with Microsoft Operations Pte. Ltd., Singapore relevant to F.Y. 2004-05. (iii) Please state as to why not the payments received by the assessee from sale of products in India be taxed as royalties as per the provisions of the Income Tax Act,1961 as well as the tax treaty between India and USA, for the detailed reasons mentioned in the assessment order of previous year. Please state whether any new facts relevant to the characterization of income have occurred during the year, if yes, the same be submitted. (iv) The total amount of soft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of the Tribunal have been supplied to us. 10. Per contra, the ld. DR, relying upon the orders of the lower authorities, however conceded that the impugned dispute has been decided in favour of the assessee by the Tribunal in the earlier years. 11. For the sake of brevity, we have considered the decision of the co-ordinate bench in ITA Nos. 1328 to 1330/DEL/2008 for A.Ys 1997-98 to 1999-2000 order dated 13.05.2019. The relevant discussions are as under: 9. We have gone through the record in the light of the submissions made on either side. We find that the facts of this case are identical to the facts involved in the case of infra-soft Ltd (supra), more particularly on a reading of the reasoning of the Ld. AO in this case to arr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Income Tax Act, 1961 or under the DTAA. When once we reach such a conclusion, we do not find any need for further verification of any fact at the end of the Assessing Officer. Insofar as the law laid down by the Hon ble High Court is concerned, whether or not this particular judgement was available before the Assessing Officer at the time of framing of the assessment, it makes little difference because the decision of the Hon ble High Court binds the learned Assessing Officer in the same way as it binds this Tribunal also. We, therefore, do not find any need to remand the matter back to the file of the learned Assessing Officer. 13 . . 14. On the aspect of interest under Section 234B, Ld. AR placed reliance on the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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