2022 (9) TMI 1634

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....consideration towards ancillary support being treated as royalty. The relevant part of the order of the ld. DRP is as under: "The facts of the case are same as in AY 2015-16 and AY 2016-17, for which directions were issued on 23.03.2018 and 01.05.2019 respectively. The issue has been discussed in detailed from para iv. on page 3 of the directions to para xiii. In AY 2015-16. It was concluded therein as under: "xii. The Panel has considered the Dra ft assessment order, submissions of the assesses, the remand report and A's reply to the Remand Report, along with the order of the DRP for AY 2014-15. It is seen that the A' has now submitted the bifurcation of revenue from the sale of software license and the support services, which....

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....see and against the Revenue by the decision of the Hon'ble Supreme Court in a land mark judgment in the case of Engineering Analysis Center of Excellence Pvt. Ltd. [2021] 432 ITR 471 has laid down the following: "Given the definition of royalties contained in article 12 of the DTAAs 168 mentioned in paragraph 41 of this judgment, it is clear that there is no obligation on the persons mentioned in section 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-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income-tax Act (section 9(1)(vi), along with Explanatio....