TMI Blog2022 (8) TMI 1383X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh 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 were not liable to deduct any TDS u/s 195 of the Income Tax Act. No substantial question of law arises in the present appeals. - ITA 250/2022, ITA 251/2022 and CM APPL. 34232/2022, ITA 252/2022 and CM APPL. 34233/2022, ITA 253/2022 and CM APPL. 34234/2022 - - - Dated:- 5-8-2022 - Hon'ble Mr. Justice Manmohan And Hon'ble Ms. Justice Manmeet Pritam Singh Arora For the Appellant : Mr. Sanjay Kumar, Senior Standing Counsel for Revenue along with Ms.Easha Kadian, Advocate. For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturers and then reselling the same to resident Indian endusers. iii) The third category concerns cases wherein the distributor happens to be a foreign, non-resident vendor, who, after purchasing software from a foreign, non-resident seller, resells the same to resident Indian distributors or end-users. iv) The fourth category includes cases wherein computer software is affixed onto hardware and is sold as an integrated unit/equipment by foreign, non-resident suppliers to resident Indian distributors or end-users. 5. These cases have a chequered history. The facts of C.A. Nos.8733-8734/2018 shall be taken as a sample, indicative of the points of law that arise from the various appeals before us. In this case, the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be illusory. 98. This ruling of the AAR flies in the face of certain principles. When, under a non-exclusive licence, an end-user gets the right to use computer software in the form of a CD, the end-user only receives a right to use the software and nothing more. The enduser does not get any of the rights that the owner continues to retain under section 14(b) of the Copyright Act read with subsection (a)(i)-(vii) thereof. Thus, the conclusion that when computer software is licensed for use under an EULA, what is also licensed is the right to use the copyright embedded therein, is wholly incorrect. The licence for the use of a product under an EULA cannot be construed as the licence spoken of in section 30 of the Copyright Act, as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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