Transfer pricing requires evidence for AMP transactions, functionally reliable comparables, and appropriate aggregation or Berry Ratio benchmarking me...
Revisionary jurisdiction cannot reopen share capital assessments where adequate inquiry supports a permissible view and no independent error is establ...
Reassessment jurisdiction fails where unverified portal information is aggregated without examining the taxpayer's explanation or relevance of entries...
Statutory sanction for delayed reassessment requires approval from the prescribed authority; approval by an inferior authority invalidates jurisdictio...
Transfer pricing margin adjustments require matching treatment of non-operating income and related costs, with comparability issues reconsidered on ev...
Preliminary-expense amortisation and MAT exempt-income adjustments prevailed, while trademark costs and managerial remuneration require fresh verifica...
Export valuation requires contemporaneous evidence; unrelated invoices cannot prove overvaluation, and dual penalties on firm and partner are impermis...
Royalty income payments made by the assessee for obtaining computer software were not liable to be taxed in India as royalty u/s 9(1)(6). The amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of computer software through EULAs/distribution agreements, are not payments of royalty for the use of copyright in computer software. Therefore, such payments do not give rise to any income taxable in India, and the persons referred to in Section 195 of the Income-tax Act were not liable to deduct TDS u/s 195. The HC order in Commissioner of Income Tax-(LTU) vs. Reliance Industries Ltd. would govern the present proceedings, as there is a DTAA entered with the countries in question, with whose residents the transactions were entered into by the assessee.
Royalty income payments made by the assessee for obtaining computer software were not liable to be taxed in India as royalty u/s 9(1)(6). The amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of computer software through EULAs/distribution agreements, are not payments of royalty for the use of copyright in computer software. Therefore, such payments do not give rise to any income taxable in India, and the persons referred to in Section 195 of the Income-tax Act were not liable to deduct TDS u/s 195. The HC order in Commissioner of Income Tax-(LTU) vs. Reliance Industries Ltd. would govern the present proceedings, as there is a DTAA entered with the countries in question, with whose residents the transactions were entered into by the assessee.
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