Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 1207 - ITAT CHENNAITDS u/s 195 - Royalty - Assessee purchased certain software licenses from M/s.Saipem SPA, Italy, which were used by assessee for providing services to customers for various support functions in accounting, reporting, etc.- Addition u/s 40(a)(i) - whether the aforesaid payments are Royalty payment u/s 9(1)(vi) of the 1961 Act and Article 13(3) of India-Italy DTAA which were subject to income-tax deduction at source u/s 195 ? - HELD THAT:- As could be seen from decision of Hon’ble Karnataka High Court in the case of CiT v. Synopsis International Old Limited [2013 (2) TMI 448 - KARNATAKA HIGH COURT] which decision was rendered in context of Royalty as defined in India-Ireland DTAA wherein definition of Royalty is paramateria to definition of Royalty as used in India-Italy DTAA(except exclusion to aircraft in case of India- Ireland DTAA as detailed above by us in this order by reproducing relevant Article of both the treaties) with which we are seized of and Hon’ble Karnataka High Court has held that grant of non-exclusive non transferable license in computer software with no right to sub-lease or transfer shall fall within Royalty both under DTAA as well u/s 9(1)(vi) of the 1961 Act read with explanations and shall be chargeable to incometax under the provisions of the 1961 Act. Hon’ble jurisdictional High Court has affirmed the ratio of decision of Hon’ble Karnataka High Court in the case of Synopsis International Old Limited, in a recent judgment in the case of Zylog Systems Limited [2019 (5) TMI 1209 - MADRAS HIGH COURT] . We are bound by aforesaid decision of Hon’ble Jurisdictional High Court decision and Respectfully following the decision of Hon’ble Madras High Court in the case of Zylog, we allow appeal of Revenue
|