ESOP expenditure allowed as FMV difference; long-term capital gain issue sent back for collector rate determination; deferred income additions disallo...
Appeal allowed; impugned order quashed as regulator failed to prove nexus or manipulative scheme; sale genuine - s.12A(a)-(c), Regs 3(a)-(d),4(1),4(2)...
Appellant's ring-back tone service held OIDAR, taxable domestically for 01.07.2012-31.07.2016; liability confirmed, penalties vacated, remanded for re...
The ITAT upheld the co-ordinate bench decision and allowed the appeal of the assessee, holding that amounts characterized as GIT/Infrastructure charges did not constitute fees for included services (FIS) under Article 12(4)(b) of the India-Canada DTAA nor did they constitute "royalty" under Article 12(3). The Tribunal found that the payments by Indian group entities were consideration for mere use of third-party software (a copyrighted article without transfer of copyright or grant for commercial exploitation) and therefore fell outside the treaty definitions of FIS and royalty. Consequently, the impugned assessment treating the receipts as FIS/royalty was reversed.
The ITAT upheld the co-ordinate bench decision and allowed the appeal of the assessee, holding that amounts characterized as GIT/Infrastructure charges did not constitute fees for included services (FIS) under Article 12(4)(b) of the India-Canada DTAA nor did they constitute "royalty" under Article 12(3). The Tribunal found that the payments by Indian group entities were consideration for mere use of third-party software (a copyrighted article without transfer of copyright or grant for commercial exploitation) and therefore fell outside the treaty definitions of FIS and royalty. Consequently, the impugned assessment treating the receipts as FIS/royalty was reversed.
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