2025 (7) TMI 1595

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....Assessee] has filed the present petition, inter alia, impugning the certificate dated 14.06.2025 issued under Section 197 of the Income Tax Act, 1961 [Act] directing that tax be deducted at the rate of 15% on the consideration paid to the Assessee. The Assessee is a tax resident of United States of America. The impugned certificate was issued pursuant to an order [impugned order] disposing the Assessee's application dated 24.03.2025 under Section 197 of the Act, whereby the Assessee had sought 'Nil' withholding tax certificate for financial year [FY] 2025-26 (Assessment Year [AY] 2026-2027). 4. It is the Assessee's case that the Assessee is engaged in maintaining database overseas and its revenue from customers in India is in the nature ....

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....n favour of Ovid / Petitioner by ITAT vide order dt. 08.03.2022 2014-15 Subscription fees considered as Royalty income vide Assessment Order dt. 30.01.2017 CIT(A) affirms the addition vide order dt. 28.02.2019 Decided in favour of Ovid / Petitioner by ITAT vide order dt. 08.03.2022 2015-16 No assessment initiated 2016-17 No assessment initiated 2017-18 No assessment initiated 2018-19 Subscription  fees considered as Royalty Decided in favour of Ovid / Petitioner by No appeal filed by the Department due   income vide Assessment Order dt. 24.08.2021 CIT(A) vide order dt. 16.06.2023 to low tax effect 2019-20 No assessment initiated 2020-21 Subscription  fees consi....

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....indicates that it refers to certain decisions including the decision of the Karnataka High Court in the case of CIT v. Synopsis International Old Ltd.: 2010 SCC OnLine Kar 5512 which has been overruled by the Supreme Court in Engineering Analysis Centre of Excellence Pvt. Ltd. (supra). The Assessment Order also indicates that the AO has not followed the aforesaid decision of the Supreme Court on the ground that the Revenue has preferred a review petition before the Supreme Court. 9. In terms of Article 141 of the Constitution of India, the decision of the Supreme Court is binding on the Revenue and disregarding the same cannot be countenanced. 10. The learned Senior Counsel appearing for the Revenue has also handed over the copy of th....