2023 (1) TMI 1288 - HC - Income Tax

Court allows appeal filing delay, respondent support. AY 2017-18 ruling favors respondent, no substantial legal questions.

The court condoned a 2-day delay in filing the appeal, as the respondent did not oppose the application. The appeal for Assessment Year (AY) 2017-18 was ... Income taxable in India - taxability of receipts towards software and subscription - AO had held the receipt to be royalty and taxed it @10% on the gross basis as per Article 12 in India-Netherland treaty - HELD THAT:- The issues which arise in this special leave petition have been considered by this Court in a case of Engineering Analysis Centre of Excellence Private limited [2021 (3) TMI 138 - SUPREME COURT] as held consideration end user license, Copy Right Act, and provisions contained in DTAA and the Income Tax Act and has laid down the parameters to test whether the receipt from sale of software would tantamount to royalty or not. No substantial question of law arises for our consideration in the present appeal. Application for condonation of a two-day delay in filing the appeal was allowed: 'the delay is condoned.' The appeal pertains to Assessment Year 2017-18, challenging the Income Tax Appellate Tribunal's order dated 11.07.2022, which ruled in favour of the respondent/assessee. Parties informed the Court that the issue is covered by the Supreme Court decision in Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT [2021] 432 ITR 471 [SC]. In view of that position, the Court held that 'no substantial question of law arises for our consideration' and therefore the appeal was closed. CM disposed accordingly.