2022 (10) TMI 1104 - ITAT DELHI

Income accrued in India - Addition treating the entire receipt as “Royalty” u/s 9(1)(vi) taxable @ 10% under the India Germany Double Taxation Avoidance Agreement (“DTAA”) - HELD THAT:- We find that the identical issue was raised before the Co-ordinate Bench of the Tribunal in the case of M/s. Springer Verlag GmbH [2022 (8) TMI 1297 - ITAT DELHI] no merit in the findings of the ld. CIT(A) by treating the commission as ‘managerial service’ under the India Germany DTAA.

There is no dispute that the assessee has received commission as per the Commissionaire Agreement with SIPL which is nothing but export commission/sales commission, which has been treated as FTS. Thus we set aside the findings of Ld.CIT(A) and direct the AO to delete the addition. Thus, Ground No.2 raised by the assessee is allowed.

Addition in respect of subscription fee collected from third party customers - HELD THAT:- it is not the case of the Revenue that there was transfer of copyright by the assessee - As respectfully following the judgement of Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P.) Ltd. [2021 (3) TMI 138 - SUPREME COURT], AO directed to delete the additions.