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TMI Blog2022 (6) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income-tax, Circle - 2(l)(2)(International Taxation), New Delhi ('Ld. AO') has erred in characterizing, and the Learned Dispute Resolution Panel ('Ld. DRP) has further erred in confirming that, the nature of receipts amounting to INR 3,30,00,000 from sale of perpetual licence to State Bank of India ('SBI') as 'royalty' income liable for taxation in India within the meaning of Article 12(3) of the India-USA Double Taxation Avoidance Agreement ('DTAA') stating that payment received by the Appellant is towards use of secret process as well as grant of licence to use the software. 2. On the facts and in the circumstances of the case and in law, the Ld. AO / Ld. DRP erred in adopting the amended definition of 'royalty' as per the Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion platform which enables the development of mobile applications. It. provided an end-to end integrated, cloud-based platform that enables enterprises to quickly design, build, test, deploy and manage multi-channel app experiences. It also provides a suite of customizable, ready-to-run apps that lower costs, ensure faster time to market, and provide enterprises the flexibility to evolve at the speed of mobile technology. The assessee company employed a specialized staff of professionals globally dedicated to development, delivery, and support of mobile solutions and technologies. It provided software and support services to meet the demands of the ever changing mobile landscape and provided customers with innovative solutions. 3. During t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Ltd. vs. The Commission of Income-tax in Civil Appeal Nos.8733-8734 of 2018. In this case, Hon'ble Apex Court expounded that consideration for the resale of the computer software through End User License Agreement (EULA)/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. Ld. counsel submitted that the facts in the assessee's case are identical. He further submitted that ITAT in assessee's own case earlier also has decided the issue in favour of the assessee. 7. Ld. DR for the Revenue could not dispute the above proposition. 8. Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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