TaxTMI 
TaxTMI 
2021 (4) TMI 916
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.... were heard together and are disposed of by this common order for the sake of convenience. 2. The assessee is aggrieved by the decision of Ld. CIT(A) in confirming the assessment of payments received by the assessee from its Indian customers in respect of licenses granted for use of copy righted computer software as royalty u/s 9(1)(vi) of the Income-tax Act,1961 ['the Act' for short]. 3. The assessee company is a foreign company incorporated in Australia. The company is granting licenses for use of software programs. The assessee has entered into an agreement with independent Indian distributors for distribution and sale of its software licenses and hardware products in India. The assessee contended before the tax authorities tha....
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.... Pacific Ptyl Ltd (2012)(343 ITR 1)(AAR), wherein the AAR has taken the view that the impugned receipts are in the nature of "royalty". However, the AAR had expressed a different view in the case of Dassault Systems, KK (2010)(322 ITR 125)(AAR), which is in the line expressed by Hon'ble Delhi High Court. 7. The Ld A.R submitted that the Hon'ble Supreme Court has consolidated all appeals arising from the orders passed by Hon'ble Karnataka High Court, Hon'ble Delhi High Court and the AAR. The Hon'ble Supreme Court has rendered its decision in the case of Engineering Analysis Centre of Excellence Pvt. Ltd. Vs. CIT (Civil appeal Nos.8733-8734 of 2018 dated 02.3.2021). The Ld. A.R. submitted that the decision rendered by AAR in the assessee's c....
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....ax Act (section 9(1)(vi), along with explanations 2 and 4 thereof), which deal with royalty, not being more beneficial to the assessees, have no application in the facts of these cases. 169. Our answer to the question posed before us, is that the amounts paid by resident Indian end-users/distributors to nonresident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India, as a result of which the persons referred to in section 195 of the Income Tax Act were not liable to deduct any TDS under section 195 of ....