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| The Tax Publishers2022 TaxPub(DT) 4470 (Del-Trib) : (2022) 097 ITR (Trib) 0079 INCOME TAX ACT, 1961
Section 9(1)(vi)
Software sales cannot give raise to Royalty income taxable in India.
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Income deemed to accrue or arise in India - Under section 9(1)(vi) - Royalty - Consideration towards supply of software to Indian entities
Assessee-non-resident received consideration towards supply of software to Indian entities. AO taxed the same as royalty. Held: Amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, was not the payment for use of copyright in the computer software, and did not create any interest or right in such distributors/end-users, which would amount to the use of or right to use any copyright. Therefore, same could not be taxed as royalty.
Relied:Ericssion AB (2012) 343 ITR 470 (Del-HC) : 2012 TaxPub(DT) 20 (Del-HC) and Engineering Analysis Centre of Excellence Private Limited (LL 2021 SC 124 : 2021 TaxPub(DT) 1208 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, DELHI BENCH
KUL BHARAT, J.M. & B. R. R. KUMAR, A.M.
Nokia Solutions and Networks OY v. Addl. CIT
ITA No. 1000/Del/2015 And ITA No. 1116/Del/2017 and ITA No. 1117/Del/2017 And ITA No. 6704/Del/2017 and ITA No. 7419/Del/2018 and ITA No. 5121/Del/2019
7 December, 2021
Assessee by : Deepak Chopra, Adv.
Revenue by : Sunil Kumar, CIT DR
Per Bench
The present appeals have been filed by the assessee against the Orders, dated 30-1-2015, 30-1-2017, 30-10-2017 and 24-5-2019 passed by the assessing officer under section 143(3)/144C(13) of the Income Tax Act, 1961.
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