2021 (9) TMI 1102

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.....2014 passed in I.T.A.No.2195/Mds/2013 for the Assessment Year 2008-09. 2.The appeal has been admitted on 06.07.2015 on the following substantial questions of law : "1.Whether on the facts and circumstances of this case, the Tribunal was right in deleting the disallowance made by the AO holding that the amendment to Section 9(1)(vi) introduced by Finance Act, 2012 with retrospective effect from 01.06.1976 is not applicable and therefore no TDS needs to be deducted? 2.Is not the finding of the Tribunal bad, especially when a non resident companies, ACI of Singapore and IRPL of Australia have permanent establishment in India through the medium of assessee company and as such liable to deduct tax at source on the payment r....

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....ivate Limited v. Commissioner of Income Tax and another reported in (2021) SCC Online SC 159, has held in favour of the assessee. 5.In the said decision, there were four categories of cases as mentioned below : "4.The appeals before us may be grouped into four categories: i) The first category deals with cases in which computer software is purchased directly by an end-user, resident in India, from a foreign, non-resident supplier or manufacturer. ii) The second category of cases deals with resident Indian companies that act as distributors or resellers, by purchasing computer software from foreign, nonresident suppliers or manufacturers and then reselling the same to resident Indian end-users. iii)The ....

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....tribution 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 the Income Tax Act. The answer to this question will apply to all four categories of cases enumerated by us in paragraph 4 of this judgment. 174. The appeals from the impugned judgments of the High Court of Karnataka are allowed, and the aforesaid judgments are set aside. The ruling of the AAR in Citrix Systems (AAR) (supra) is set aside. The appeals from the impugned judgments of the High Court of Delhi are dismissed." 7.The....