2014 (1) TMI 1281

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....e circumstances of the case, the learned Assistant Director of Income-tax (IT) 3(1) has erred in treating and the Hon'ble Dispute Resolution Panel has further erred in confirming the entire payments received by the Appellant from customers in India during the captioned year are taxable as "royalty" under Section 9(1)(vi) of the Income-tax Act, 1961 and Article 12 of India - Ireland Double Taxation Avoidance Agreement." 3. Briefly stated the facts of the case are that the assessee is a company incorporated and tax resident of Republic of Ireland. It is engaged in the business of distributing Gartner Group's Research Products in the form of subscriptions, both in Ireland and through its distributors, in those territories where the Gartner ....

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....rt in the case of CIT (IT) v. Wipro Ltd. [(2011) 203 Taxman 621 (Kar.)] and submitted that Wipro Ltd. a customer of the present assessee made payment without deduction of tax at source u/s 195 of the Act. When the matter finally came up before the Hon'ble Karnataka High Court, it was held that the payments made by Wipro Ltd. to Gartner for online use of database was for licence to use said database and hence the consideration was royalty, liable for deduction of tax at source u/s 195 of the Act. 5. The learned AR countered the submissions advanced on behalf of the Revenue by stating that the issue as to whether the payment should be considered as 'royalty' or 'business profits' is not free from doubt in view of the conflicting judgments ....