2023 (3) TMI 1593 - SCH - Income Tax

Hearing deferred and proceedings stayed pending review of three-Judge Bench decision on whether sums qualify as 'royalty'

The SC addressed whether sums constitute 'royalty' and noted assessees relied on a three-Judge Bench decision on the point. Because a review petition by ... Definition of ‘royalty’ - income deemed to accrue or arise in India - HELD THAT:- Respective assessees have heavily relied upon the three-Judge Bench decision of this Court in Engineering Analysis Centre of Excellence (P) Ltd. [2021 (3) TMI 138 - SUPREME COURT] However, as pointed out that against the decision of this Court in the case of Engineering Analysis Centre of Excellence (P) Ltd (supra) the review application is filed by the Revenue which is pending. In that view of the matter, the hearing of the present matters is deferred till the review application against the decision (supra) is heard and finally disposed of. The central issue is the definition of 'royalty'. Assessees relied heavily on the three-Judge Bench decision in Engineering Analysis Centre of Excellence (P) Ltd. v. CIT, (2022) 3 SCC 321. The Revenue has filed a review application against that decision, which remains pending. In view of the pending review, the Court has deferred hearing of the present matters until the review application against Engineering Analysis Centre of Excellence (P) Ltd. v. CIT is heard and finally disposed of.