2024 (9) TMI 879 - SCH - Income Tax

Supreme Court Upholds High Court Decision, Dismisses Petition, Condoning Delay and Disposing Pending Applications.

The SC dismissed the special leave petition, upholding the HC's impugned judgment and order. The delay in filing was condoned, and all pending ... Income deemed to accrue or arise in India - licensing of software products of Microsoft in the Territory of India by the Respondent - TDS u/s 195 - whether taxable in India as Royalty u/s 9(1)(vi) of the Act read with Article 12 of the Indo US DTAA? As decided by HC [2022 (3) TMI 482 - DELHI HIGH COURT] amounts paid by resident Indian end-users/distributors to nonresident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India, as a result of which the persons referred to in section 195 of the Income Tax Act were not liable to deduct any TDS u/s 195, thus decided in favour of assessee - HELD THAT:- We are not inclined to interfere with the impugned judgment and order passed by the High Court. The special leave petition is, accordingly, dismissed. The Supreme Court dismissed the special leave petition and declined to interfere with the impugned judgment and order passed by the High Court. Delay was condoned, and pending applications were disposed of.