Upholding Precedent: Supreme Court's Stance on Taxation of Cross-Border Software Payments (Royalty)

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..... ndmark judgment in Engineering Analysis Centre of Excellence Private Limited vs. Commissioner of Income Tax and Anr. [2021 (3) TMI 138 - SUPREME COURT]. This case was pivotal in addressing the tax implications for payments made to non-residents for software purchases, specifically whether these transactions constituted 'royalty' and thus were subject to tax deduction at source (TDS) under .....

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..... erencing the Code of Civil Procedure and constitutional provisions, that overturning a precedent does not retroactively affect cases already adjudicated based on that precedent. This principle safeguards the finality of litigation and upholds the maxims essential for legal certainty and public policy. The petition was dismissed, reinforcing the Engineering Analysis Centre of Excellence judgment a .....

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..... e the ethos of the judiciary: the necessity to prevent double jeopardy (Nemo debet bis vexari pro una et eadem causa), the importance of concluding litigation (Interest reipublicae ut sit finis litium), and the acceptance of judicial decisions as correct (Res judicata pro veritate occipitur). These principles are foundational to ensuring that justice is both served and perceived to be served, ther .....

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