2023 (1) TMI 1294 - HC - Income Tax

Income taxable in India - taxing of the sale of software and subscribers as royalty income - HELD THAT - As the issue raised in the instant matter is covered by the judgment of the Supreme Court rendered in Engineering Analysis Centre of Excellence Pvt. Ltd. 2021 (3) TMI 138 - SUPREME COURT as 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 is not the payment of royalty for the use of copyright in the computer software and that the same does not give rise to any income taxable in India as a result of 5 which the persons referred to in section 195 of the Income-tax Act were not liable to deduct any TDS under section 195 of the Income-tax Act and decided the issue in favour of the assessee.

Summary

Issues Involved:
1. Condonation of delay in re-filing the appeal.
2. Appeal concerning Assessment Year 2014-2015 with reference to a Supreme Court judgment.

Analysis:

Issue 1: Condonation of Delay
The appellant/revenue filed an application seeking condonation of a 120-day delay in re-filing the appeal. The respondent/assessee did not oppose the appellant's request for condonation. Consequently, the court granted the condonation of delay, and the application was disposed of accordingly.

Issue 2: Appeal Concerning Assessment Year 2014-2015
The appeal in question pertained to the Assessment Year 2014-2015. The Income Tax Appellate Tribunal had ruled in favor of the respondent/assessee in an order dated 08.04.2022. Both parties acknowledged that the issue raised 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 a result, the court found that no substantial question of law arose for consideration in the present appeal and subsequently closed the appeal based on this assessment.

In summary, the High Court of Delhi addressed the application for condonation of delay in re-filing the appeal and then proceeded to close the appeal concerning the Assessment Year 2014-2015 after determining that the issue raised was covered by a relevant Supreme Court judgment, thereby finding no substantial question of law to consider further.