2023 (3) TMI 910

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.... nature of royalty under Article 12 of the India - USA Double Taxation Avoidance Agreement (DTAA). 3. Briefly the facts are, the assessee is a non-resident corporate entity, incorporated in United States of America (USA) and tax resident of USA. As stated by the Assessing Officer, the assessee is engaged in developing technology for enterprise IT operations and development operations and provides operational intelligence solutions. In the year under consideration, the assessee sold software to HCL Technology Ltd. and Infosis Ltd. for their internal use and received licence fee aggregating to Rs.1,42,73,856/-. In course of assessment proceeding, the assessee pleaded that the amount received by the assessee was from sale of software products....

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....ade in the rectification order the assessee preferred appeal before learned Commissioner (Appeals). However, learned Commissioner (Appeals) upheld the addition. 4. We have considered rival submissions and perused the materials on record. It is evident, in course of assessment proceeding as well as before learned first appellate authority, the assessee had furnished documentary evidences, including copies of invoices to demonstrate the nature of transaction. It is observed, in the year under consideration, the assessee had sold certain software to two Indian entities for their internal use. As observed by learned Commissioner (Appeals), software sold by the assessee is for introducing a definite set of processes which are real time substitu....