2024 (2) TMI 1050 - SCH - Income Tax

Income deemed to accrue or arise in India - licensing of software products of Microsoft in the Territory of India by the Respondent was not taxable in India as Royalty under Section 9(1)(vi) read with Article 12 of the Indo US DTAA - HELD THAT - The issue raised by the Revenue in the present special leave petition is covered against them in the case of Engineering Analysis Centre of Excellence Private Limited 2021 (3) TMI 138 - SUPREME COURT wherein held that the payment received for providing access to computer software to its member firms located in India, does not amount to royalty liable to be taxed in India under the provisions of the Income Tax Act, 1961 and the India-UK DTAA. As Ld' Additional Solicitor General states that a Review Petition has been filed against this judgment, which is currently pending and the right of the Revenue to revive the present special leave petitions may be reserved, in case the Review Petition is allowed. Recording the aforesaid, the special leave petition is dismissed, as the same is covered by the said decision of this Court. In case the review petition on the issue raised in the present special leave petition is allowed, it will be open to the petitioner(s) to get the present special leave petitions revived.

Summary

Issues involved:
The issue raised by the Revenue in the present special leave petition is covered against them vide judgment dated 02.03.2021 in the case of "Engineering Analysis Centre of Excellence Private Limited vs. The Commissioner Of Income Tax & Anr.", (2022) 3 SCC 321.

Judgment Details:

Issue 1:
The Revenue raised an issue in the special leave petition which is already covered against them in a previous judgment dated 02.03.2021 in the case of "Engineering Analysis Centre of Excellence Private Limited vs. The Commissioner Of Income Tax & Anr.", (2022) 3 SCC 321. The learned Additional Solicitor General mentioned that a Review Petition has been filed against this judgment, which is pending. The right of the Revenue to revive the present special leave petitions may be reserved if the Review Petition is allowed.

The Court, after hearing the counsel, has condoned the delay and dismissed the special leave petition as it is covered by the previous decision of the Court. However, if the review petition on the issue raised in the special leave petition is allowed, the petitioner(s) will have the opportunity to get the special leave petitions revived. Any pending application(s) shall stand disposed of accordingly.