TaxTMI 
TaxTMI 
2022 (4) TMI 1419
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....ssee has changed name from Microsoft Regional Sales Corporation to Microsoft Regional Sales Pte. Ltd. and revised Memorandum of Appeal along with grounds of appeal have been filed. 1.1 The assessee has come in appeals against the common order dated 23.05.2018 of the DRP-2, New Delhi for assessment year 2010-11 and 2011-12, passed u/s 144C(5) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') and the orders for the respective years, dated 31/7/18 of Ld. Deputy Commissioner of Income Tax Circle 2(2)(1), Internatioinal Taxation, New Delhi. 2. The facts in brief are assessee is a company incorporated in U.S. and is a wholly owned subsidiary of Microsoft Corporation, USA ('MS Corp'). Assessee has a branch office in Singapore. G....
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....n received by the assessee from the sale of software was held as taxable as royalty in India and the AO assessed the same in the hands of assessee on protective basis and in the hands of MOL Corporation (MOLC) on substantive basis. 2.2 The assessee submitted objections to the DRP which were rejected and the AO passed final assessment orders on 30.01.2014 for the assessment year 2010-11 and 09.02.2015 for the assessment year 2011-12. 2.3 Earlier in the appeals, the Tribunal vide its order dated 26.09.2016 in ITA No. 6089/Del/2012 and ITA No. 1615/Del/2015 for assessment year 2010-11 and 2011-12 respectively disposed of the appeals of the assessee holding that in the light of Hon'ble Delhi High Court Judgment in DIT vs. Infrasoft Ltd. [2014....
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.... of software 2.1 Final assessment order dated July 31, 2018 passed by Ld. AO pursuant to directions of Ld. Dispute Resolution Panel ('Ld. DRP') completely disregarding specific directions issued by this Hon'ble Tribunal vide its order (ITA No. 1970/Del/2014) dated September 26, 2016 to follow decision of the Hon'ble Delhi High Court in case of Infrasoft Limited (220 Taxman 273) is bad in law, unlawful and invalid. 2.2 Ld. DRP and Ld. AO failed to grant legitimate relief, by wrongly placing reliance on Gracemac vs DIT (42 SOT 550), even while noting that same has been held to be not good law by Hon'ble ITAT vide its order in ITA No. 1970/Del/2014 dated September 26, 2016. 2.3 That on the facts and in circumstances of the case and in la....
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..... Tax Authorities below failed to follow the directions of Tribunal to apply the principles of law laid by Hon'ble Delhi High Court in the case of Infrasoft which now stands confirmed by Hon'ble Supreme Court in the judgment dated 02.03.2021 in Engineering Analysis Centre of Excellence (P) Ltd. vs. Commissioner of Income Tax (2021) 125 taxman.com 42 (SC). It was also submitted that in the case of Gracemac Corporation which stands amalgamated with MOL Corporation for the assessment year 2005-06, 2006-07 and 2007-8 the Co-ordinate Bench 'B' at Delhi by order dated 16.11.2020 had allowed the appeals which have been further upheld by Hon'ble Delhi High Court by judgment dated 07.03.2022. 4.1. On the other hand Ld. DR defended the orders of Tax....