9911796707
TMI Blog2025 (5) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... -21 arising out of direction dated 23.03.2023 of the Depute Resolution Panel (DRP)-1, New Delhi. 2. Brief facts of the case:- The assessee is a tax resident of United States of America and engaged in the development, marketing, and sale of Intelligent Automation (hereinafter referred to 'IA') software previously known as Robotic Process Automation (in short 'RPO). The primary source of revenue of assessee is sale of IA software and rendering of subscription serviced through software-as-a-service [hereinafter referred to 'SaaS'] platform to customers under a license agreement. Additionally, the assessee provided professional services to its customers such as implementation of IA software and consulting. The company develops and sells RPA so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the decision of Co-ordinate Bench of the Tribunal in Assessment Years 2018-19 and 2019-20. On going through the said order, we find that vide ITA No.2147/Del/2022 (AY 2018-19) and in ITA No.2148/Del/2022 for AY 2019-20 vide order dated 24.08.2023, the Coordinate Bench of the Tribunal has considered that the existence or otherwise of PE of the assessee in India and in case there is PE, the profit attributable to the PE. The Ld. AR has successfully pointed out that there is no change in the facts and circumstances and in fact the authorities below have also relied their previous year observations and findings with regard to existence of PE. In this regard, the said references of the Assessing Officer are in the draft assessment order in par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d into a separate inter-company agreement with AASPL, through which, the assessee receives services from AASPL by remunerating the Indian AE at cost plus 18% mark-up. As per the terms of the agreement, the Indian AE provides RPA related software development and related services, which includes without limitation, coding, testing, financial modeling, customers support etc. 25. As could be seen from the aforesaid facts, even part of the services to be provided by the assessee under the master service agreement with ANZ is outsourced to the India AE. In any case of the matter, the assessee has offered the receipts from services as FTS income and it is a fact on record that the Assessing Officer has accepted such income without assessing it a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be attributed to the PE are from sale of software licence, however, as could be seen from the facts on record, the transfer of licence takes place, once, the licence key is generated and made available to the licencee after execution of the contract. Insofar as the receipts from provision of services, undisputedly, the assessee has offered them to tax. Though, learned Departmental Representative has alleged before us that the licence agreement was executed in India contrary to the claim of the assessee, however, no documentary evidences has been brought to establish such facts. 27. Thus, considering the totality of facts and circumstances of the case, we are of the view that the Revenue has failed to establish on record through credible e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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