Revenue appeal dismissed: payments by Indian residents to nonresident software suppliers don't raise question of law on TDS under s.195/s.9(1)(vi)

The HC dismissed the Revenue's appeal against the ITAT order for AY 2013-14, upholding that payments by Indian residents to non-resident foreign software suppliers do not give rise to a question of law on TDS liability under section 195/section 9(1)(vi) as framed, since the Tribunal's view follows earlier HC precedents. The court held the issues (royalty characterization, first-sale doctrine, retrospective amendment, treaty/OECD interpretation and deemed accrual in India) are covered by existing authority, so no substantial question of law arises.

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Appeal against the ITAT order dated 20.06.2019 in ITA No. 5534/DEL/2016 for assessment year 2013-14. The Tribunal relied on this Court's decisions in M/s Asia Satellite Telecommunications Co. Ltd. v. DIT (2011) 332 ITR 340 (Del) and Director of International Taxation v. New Skies Satellite BV (2016) 382 ITR 114 (Del). As the issues raised by the Revenue were "squarely covered by the aforesaid decisions of this Court," the court held that "no question of law arises for our consideration." Appeal dismissed.

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