TaxTMI 
TaxTMI 
2021 (11) TMI 880
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessee's on account of sale of software to the Indian customers, as royalty. 2. It was submitted that during the relevant year under consideration assessee was also engaged in sale of tangible hardwares like routers, switches, optical network, storage area networking and home networking hardware. Assessee has also submitted that it has provided necessary support services to its customers in relation to the products supplied. In the instant case, we notice that the Ld. AO has extracted relevant clauses of the agreement in the assessment order and they are reproduced by us in the preceding paragraphs. A perusal of the same would show that the assessee is granting license to the integrators and also authorizing the integrator to grant li....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me Court in the case of Engineering Analysis Centre of Excellence (supra) is followed by the co-ordinate bench in AY 2014-15, 2015-16 and 2016-17 and the same should be followed in this year also. 6. We have perused submissions advanced by both sides in light of records placed before us. 7. We note that Hon'ble Supreme Court in case of Engineering Analysis Centre for Excellent Pvt. Ltd. vs CIT (supra) while considering the issue had looked into the ratio is laid down by the jurisdictional High Court, and the other decisions that was relied on by the Ld. AO. Hon'ble Supreme Court in paragraph 27,47,52,168 & 169 observed as under: 24. The Apex Court in the aforesaid case has held in paragraphs 27, 47, 52, 168 & 169 as under: "27....
X X X X Extracts X X X X
X X X X Extracts X X X X
....GE Technology (supra). 47. In all these cases, the "licence" that is granted vide the EULA, is riot a licence in terms of Section 30 of the Copyright Act, which transfers an interest in all or any of the rights contained in Sections 14(a) and 14(b) of the Copyright Act, but s a "licence" which imposes restrictions or conditions for the use of computer software. Thus it cannot be said that any of the EULAs that we are concerned with are referred to Section 30 of the Copyright Act, inasmuch as Section 30 of the Copyright Act speaks of granting ar1 interest in any of the rights mentioned in Sections 14(a) and 14(b) of the Copyright Act. The EULAs in all the appeals before us do not grant any such right or interest, least of all, a right or i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e resident end-user, is in fact the sale of a physical object which contains an embedded computer programme, and is therefore, a sale of goods, which, as has been correctly pointed out by the learned counsel for the assessees, the law declared by this Court in the context of sales tax statute in Tata Consultancy Services v. State of A.P., 2005(1) SCC 308 (see paragraph 27). 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 S. 195 of the Income Tax Act to deduct tax at source, as the distribution agreements/EULAs in the facts of these cases do not create any interest or right in such distributors/end-use....