2021 (7) TMI 1196

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....eting the addition made by the A.O and in holding that the revenue received by the assessee from supply of software is not taxable in India as Royalty. 2. On the facts and circumstances of the case the Ld.CIT(A) failed to appreciate that the assessee had transferred unlimited, assignable, enterprise wide, wordwide, perpetual right and license to use the software. Thus the payment in lieu of such transfer was fully covered u/s 9(l)(vi) of the Income-tax Act, 1961 explanation 2 and Article 12(3) of DTAA. 3. The appellant craves to add, amend, modify or alter any grounds of appeal at the time or before the hearing of the appeal." 2. Briefly stated facts of the case are that the assessee is a tax resident of Sweden and filed its return ....

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....2 of India Sweden DTAA. On further appeal, the Ld. CIT(A) following the decision of the Hon'ble Delhi High Court, deleted the additions observing as under: "5.7 In the instant case, the customer only had a nonexclusive right and is not permitted to sublicense the software except for internal business purposes. The appellant continue to be the sole and exclusive owner of the rights to software and to its source code, and to all intellectual property rights thereto. In view of the above discussion, in accordance with the principle of consistency and respectfully following the order of the Hon'ble Delhi High Court in the cases referred to above, grounds No. 2-7 is decided in favour of the appellant. The addition made by the AO is deleted." ....