2021 (4) TMI 645

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....c Ptd. Ltd. (hereinafter referred to as the 'Appellant') respectfully craves leave to prefer an appeal under section 253(l)(d) of the Income-tax Act, 1961 (hereinafter referred to as the 'Act'), against the order dated 14 March 2017 (received by the Appellant on 20 March 2017) passed by the learned Deputy Commissioner of Income-tax, Circle 3(1 )(2), International Taxation, New Delhi (hereinafter referred to as 'AO') in pursuance of the directions issued by the Hon'ble Dispute Resolution Panel - 2, New Delhi (hereinafter referred to as 'DRP').dated 10 February 2017 under section 143(3) of the Act read with section 144C(13) of the Act on the following grounds, which are independent of and without prejudice to each other. Ground 1 - C....

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....ct On the facts and in the circumstances of the case and in law, the learned AO erred in initiating penalty proceedings under section 271(l)(c) of the Act." 3. The assessee company is formed under the laws of Singapore and the Company does not have any presence in India either by way of a Permanent Establishment or fixed base as defined under Article 5 of the Double Tax Avoidance Agreement entered between India and Singapore as mentioned in the Assessment Order. The draft assessment order was passed on 5/9/2016. The assessee filed return of income for AY 2014-15 on 27/09/2014, declaring total income at Rs. 'NIL'. During the relevant Financial Year, the assessee had received amount of Rs. 242,52,89,282/- on account of sale of lic....

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....4 order dated 31/8/2020). 6. The Ld. DR submitted that the issue of software income whether royalty or not has been settled by the Apex Court in assessee's favour and relied upon the assessment order. 7. We have heard both the parties and perused all the relevant material available on record. The issue of software income is not a royalty income is settled by the Hon'ble Apex Court in case of Engineering Analysis Centre of Excellence Pvt. Ltd. (Supra). The Hon'ble Apex Court held as under: 168. Given the definition of royalties contained in Article 12 of the DTAAs mentioned in paragraph 41 of this judgment, it is clear that there is no obligation on the persons mentioned in section 195 of the Income Tax Act to deduct tax at so....