2024 (2) TMI 228 - SCH - Income Tax

Accrual of income in India - sale of software product - royalty receipts - India USA DTAA - HELD THAT - Having regard to Order 2024 (2) TMI 137 - SC ORDER this special leave petition is also dismissed wherein held as Having regard to the judgment of this Court in the case of Engineering Analysis Centre of Excellence Private Limited 2021 (3) TMI 138 - SUPREME COURT held that 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.

Summary

Issues involved: Delay condonation; Dismissal of special leave petition

In the present case, the Supreme Court, after hearing the counsel, condoned the delay and dismissed the special leave petition. The delay was condoned based on a previous order of the Court in another case. The dismissal of the special leave petition was in line with the judgment in a specific case and an order passed by the Court in a related matter.

The Court specifically mentioned that the delay in filing the special leave petition was condoned. This decision was influenced by a judgment in a previous case and an order of the Court in a different matter. As a result, the special leave petition in the current case was dismissed. Any pending applications were also disposed of in accordance with this decision.