Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
ITAT held that receipts from sale of standardized software and incidental support and maintenance services received by the taxpayer from its Indian customer do not constitute "royalty" under the Income-tax Act or Article 12(3) of the India-Ireland DTAA. The tribunal emphasised the contractual provision establishing the supplier's pre-existing proprietary rights in the software and related materials, and that no transfer of copyright or reproduction rights to the customer occurred. Consequently, the assessing officer's inclusion of those receipts as royalty was unsustainable; the addition was reversed and deleted, and the tax treatment of the receipts as non-royalty income was affirmed.
ITAT held that receipts from sale of standardized software and incidental support and maintenance services received by the taxpayer from its Indian customer do not constitute "royalty" under the Income-tax Act or Article 12(3) of the India-Ireland DTAA. The tribunal emphasised the contractual provision establishing the supplier's pre-existing proprietary rights in the software and related materials, and that no transfer of copyright or reproduction rights to the customer occurred. Consequently, the assessing officer's inclusion of those receipts as royalty was unsustainable; the addition was reversed and deleted, and the tax treatment of the receipts as non-royalty income was affirmed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4918 
