Appeal Proceeded After Delay Condoned; ITAT Rules Software Licensing, Cloud Services Not Royalty Income.

COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) -2 Versus MOL CORPORATION

COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) -2 Versus MOL CORPORATION - TMI Issues involved:
1. Application for condonation of delay in re-filing the appeal.
2. Interpretation of taxability of income from licensing/sale of software products and subscription receipts for cloud services.

Issue 1: Application for Condonation of Delay
- An application was filed by the appellant/revenue seeking condonation of a 100-day delay in re-filing the appeal.
- The respondent/assessee's counsel had no objection to the delay being condoned.
- The delay was condoned, and the application was disposed of accordingly.

Issue 2: Interpretation of Taxability of Income
- The appeal pertained to the Assessment Year 2012-13 and challenged the order of the Income Tax Appellate Tribunal regarding the taxability of income.
- The appellant/revenue raised questions regarding the taxability of licensing of software products, computer software, and cloud services.
- The Tribunal ruled that the income from licensing/sale of software products and subscription fees for cloud services did not qualify as royalty.
- The appellant/revenue cited a Supreme Court judgment in support of their position, with a pending review petition.
- The appeal was closed as no substantial question of law was found, but parties were to abide by the decision of the review petition if successful.