2023 (4) TMI 1088

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.... "1. On the facts and circumstances of the case and in law, the final assessment order passed by the Ld. AO is bad-in-law and liable to be quashed. 2. On the facts and circumstances of the case and in law, the Ld. AO has grossly erred in passing the final assessment order without considering the material available on record and is bad in law and void ab initio since it has been passed without giving sufficient opportunity to the appellant. 3. On the facts and circumstances of the case and in law, the Ld. AO has grossly erred in passing the final assessment order without giving the cognizance to the directions passed by the Ld. DRP and accordingly, the final assessment order is bad in law. 4. On the facts and in t....

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.... to verify the details regarding the reimbursement and to exclude receipts which are in the nature of reimbursement. 7. On the facts and circumstances of the case and in law, the ld AO erred in initiating penalty proceedings under section 270A of the Act." 3. Ground No. 1, 2 and 3 are general in nature and therefore, same are dismissed. 4. Brief facts of the case is that the assessee M/s TSYS Card Tech Ltd. Ltd is a company. Assessee is engaged in the business of providing information technology related services to financial payments industry. During the subject AY, the assessee had earned revenue from Indian Customer primarily for rendition of software license (referred to as 'PRIME) and provision of software related service....

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....nt since the user has no right to make copies or commercially exploit the right in the copyright of such software the ld DRP following the ratio laid down by Hon'ble Supreme Court in the context of Business Income/Royalty in Engineering Analysis Centre of Excellence Private Ltd. Vs. CIT (Civi l Appeal Nos. 8733- 8734 of 2018) directed to exclude receipts relating to sale of software licenses in accordance with and to the extent covered under the applicable categories contained in Hon'ble Supreme Court decision. The ld DRP held that there is no dispute regarding the fact that the assessee does not have a permanent establishment in India. Accordingly, such receipts will constitute business income under Article 7 of the DTAA in line wi....