Software supply receipts and India taxability under treaty royalty rules were held covered by binding Supreme Court precedent.

Receipts from supply of software were considered in light of Section 9(1)(vi) of the Income-tax Act and Article 12 of the India-USA DTAA. The controversy was treated as covered by the Supreme Court's ruling in Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT, which had already resolved the issue against the revenue. In view of that binding precedent, no separate adjudication was undertaken, and the position was accepted in favour of the assessee.

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Issues: Whether receipts earned from supply of software were taxable in India under Section 9(1)(vi) of the Income-tax Act, 1961 read with Article 12 of the India-USA Double Tax Avoidance Agreement.

Analysis: The issue was stated to be covered against the revenue by the Supreme Court's decision in Engineering Analysis Centre of Excellence Private Limited v. Commissioner of Income Tax. In view of that binding ruling, the revenue accepted that the controversy raised in these appeals stood concluded against it. Since the issue already stood answered by the Supreme Court, no independent adjudication was required in these matters.

Conclusion: The issue was answered against the revenue and in favour of the assessee.

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