2022 (8) TMI 1383

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.... dated 14th February, 2022 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No.6194/Del/2018, ITA No.6195/Del/2018, ITA No.6196/Del./2018 and ITA No.6197/Del/2018. Learned Counsel for the Appellant admits that the questions of law urged in the present appeal are covered by the decision of the Supreme Court in Engineering Analysis Centre of Excellence Pvt. Ltd. Vs. CIT in Civil Appeal No(s). 8733-8734/2018. He, however, states that the revenue has preferred a review petition against the said order of the Supreme Court and hence the present appeals have been filed to keep the matter alive. In the opinion of this Court, the issue of taxability of software receipts in the present cases is no longer res integra as the Supreme Co....

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....ectly imported from the United States of America ["USA"]. The assessment years that we are concerned with are 2001-2002 and 2002-2003. xxxx xxxx xxxx 97. The AAR then reasoned that the fact that a licence had been granted would be sufficient to conclude that there was a transfer of copyright, and that there was no justification for the use of the doctrine of noscitur a sociis to confine the transfer by way of a licence to only include a licence which transferred rights in respect of copyright, by referring to explanation 2 to section 9(1)(vi) of the Income Tax Act. It then held: "Considerable arguments are raised on the so-called distinction between a copyright and copyrighted articles. What is a copyrighted article? It....

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.... mentioned in sections 14(a) and 14(b) of the Copyright Act. xxxx xxxx xxxx 101. Also, any ruling on the more expansive language contained in the explanations to section 9(1)(vi) of the Income Tax Act would have to be ignored if it is wider and less beneficial to the assessee than the definition contained in the DTAA, as per section 90(2) of the Income Tax Act read with explanation 4 thereof, and Article 3(2) of the DTAA. Further, the expression "copyright" has to be understood in the context of the statute which deals with it, it being accepted that municipal laws which apply in the Contracting States must be applied unless there is any repugnancy to the terms of the DTAA. For all these reasons, the determination of the AAR in ....