2023 (1) TMI 1288 - HC - Income Tax

Income taxable in India - taxability of receipts towards software and subscription - AO had held the receipt to be royalty and taxed it @10% on the gross basis as per Article 12 in India-Netherland treaty - HELD THAT - The issues which arise in this special leave petition have been considered by this Court in a case of Engineering Analysis Centre of Excellence Private limited 2021 (3) TMI 138 - SUPREME COURT as held consideration end user license, Copy Right Act, and provisions contained in DTAA and the Income Tax Act and has laid down the parameters to test whether the receipt from sale of software would tantamount to royalty or not. No substantial question of law arises for our consideration in the present appeal.

Summary

Issues Involved:
1. Condonation of delay in filing the appeal.
2. Assessment Year (AY) 2017-18 appeal decision based on the judgment of the Supreme Court.

Condonation of Delay in Filing the Appeal:
The appellant/revenue filed an application seeking condonation of a 2-day delay in filing the appeal. The respondent/assessee did not oppose the application. The court, considering the circumstances, condoned the delay, and the application was disposed of accordingly.

Assessment Year (AY) 2017-18 Appeal Decision:
The appeal pertained to Assessment Year (AY) 2017-18, where the Income Tax Appellate Tribunal ruled in favor of the respondent/assessee in an order dated 11.07.2022. Both parties agreed that the issue in the appeal was covered by a judgment of the Supreme Court in Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT [2021] 432 ITR 471 [SC]. As there was no substantial question of law for consideration in the present appeal based on the Supreme Court's judgment, the appeal was closed accordingly.