2024 (9) TMI 1340 - SCH - Income Tax

Accrual of income in India - sale of software product - royalty receipts - India USA DTAA - delay filling SLP - as decided by HC 2023 (2) TMI 1251 - DELHI HIGH COURT 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 which the persons referred to in section 195 of the Income Tax Act were not liable to deduct any TDS under section 195. HELD THAT -There is a gross delay of 384 days in filing and 66 days in refiling this special leave petition. Delay in refiling is condoned. However, the explanation offered for seeking condonation of delay of 384 days in filing is neither satisfactory nor sufficient in law so as to condone the same. Hence, the application seeking condonation is dismissed. Even otherwise, the special leave petition is covered on merits by virtue of the judgment of this Court in the case of Engineering Analysis Centre of Excellence Private Limited 2021 (3) TMI 138 - SUPREME COURT which judgment has also been sustained in the review petition filed by the petitioner by a three-Judge Bench of this Court. SLP dismissed both on the ground of delay as well as on merits.

Summary

The Supreme Court dismissed the Special Leave Petition due to a delay of 384 days in filing, which was not condoned. The petition was also dismissed on merits, citing a previous judgment. Pending applications were disposed of.