2021 (11) TMI 587

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....pellant : Mr.N.V.Balaji For the Respondent : Mr.Karthik Ranganathan Senior Standing Counsel JUDGMENT T.S. SIVAGNANAM, J. This Tax Case Appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order of the Income Tax Appellate Tribunal, Madras "A" Bench, dated 05.06.2014 passed in I.T.A.No.2190/Mds/2013 for the ....

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....n respect of the Computer Software which was dealt with by them, procured from a Non-Resident and sold in the Indian Market. This legal issue has been decided by the Hon'ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited v. Commissioner of Income Tax and another reported in (2021) SCC Online SC 159. 5.In the said decision, there were four categories o....

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.... iv) The fourth category includes cases wherein computer software is affixed onto hardware and is sold as an integrated unit/equipment by foreign, non-resident suppliers to resident Indian distributors or end-users." 6.After elaborately considering the entire issues, the Hon'ble Supreme Court held as follows : "172. Given the definition of royalties contained in Article 12 of th....

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....ion 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 the Income Tax Act. The an....