Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
The ITAT dismissed the revenue's appeals, holding that receipts by a non-resident US corporate assessee from supply of end-user software licenses and related services do not constitute "royalty" taxable under the India-USA DTAA. The Tribunal found the license restricted copying, distribution, sublicensing, rent, source-code access and modification, and did not effect a transfer of copyright. The First Appellate Authority's detailed factual and legal analysis - applying the controlling Supreme Court ratio on software licensing and copyright transfer - was upheld as unassailed by any material demonstrating transfer of copyright. Consequently, the impugned demand was not sustained and the revenue's appeals were dismissed.
The ITAT dismissed the revenue's appeals, holding that receipts by a non-resident US corporate assessee from supply of end-user software licenses and related services do not constitute "royalty" taxable under the India-USA DTAA. The Tribunal found the license restricted copying, distribution, sublicensing, rent, source-code access and modification, and did not effect a transfer of copyright. The First Appellate Authority's detailed factual and legal analysis - applying the controlling Supreme Court ratio on software licensing and copyright transfer - was upheld as unassailed by any material demonstrating transfer of copyright. Consequently, the impugned demand was not sustained and the revenue's appeals were dismissed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4916 
