2021 (9) TMI 1473 - HC - Income Tax

TDS u/s 195 - Royalty - amounts paid by the concerned persons resident in India to non-resident, foreign software suppliers - Whether constitutes as taxable income - whether assessee had purchased only a right to use the copyright i.e. the software and not the entire copyright itself, the payment cannot be treated as Royalty as per the Double Taxation Avoidance Agreement and Treaties? - HELD THAT - As assessee submits that the substantial questions of law raised herein are squarely covered by the ruling of the Hon ble Apex Court in the case of Engineering Analysis Centre of Excellence Private Limited vs. The Commissioner of Income Tax and another 2021 (3) TMI 138 - SUPREME COURT As Revenue could not dispute the same, the substantial questions of law are answered in favour of the assessee and against the revenue.

Summary

The Karnataka High Court ruled in favor of the appellant (assessee) citing a Supreme Court ruling in the case of Engineering Analysis Centre of Excellence Private Limited vs. The Commissioner of Income Tax. The substantial questions of law were answered in favor of the assessee, and the appeal was disposed of accordingly.