9911796707
TMI Blog2021 (8) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 were not liable to deduct any TDS u/s 195 - Appeal is allowed. - ITA NO.724/2019 - - - Dated:- 3-8-2021 - Hon'ble Mr. Justice Satish Chandra Sharma And Hon'ble Mr. Justice Nataraj Rangaswamy For the Appellant : Sri S Ganesh, Senior Advocate For Sri Sandeep Huilgol, Advocate For the Respondent : Sri K V Aravind, Advocate JUDGMENT The present income-tax appeal filed under Section 260A of the Income Tax Act, 1961, is arising out of the order passed by the Income Tax Appellate Tribunal, 'B' Bench, Bengalu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nior Counsel appearing for the appellant has fairly stated before this Court that he is not pressing substantial questions of law No.1, 2 and 4 and he is confining his arguments only in respect of substantial question of law No.3. 6. Substantial question of law No.3 reads as under; 3. Whether tribunal was correct in confirming the common order passed by first respondent deeming that appellant is to be treated as an assessee in default under Section 201(1) of the IT Act by holding that payments made by the assessee were in the nature of royalty payments as defined under Explanation 2 to Section 9(1)(vi) of the IT Act and under the applicable Double Taxation Avoidance Agreement (DTAAs) and thereby giving raise to an income at the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration 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 of the Income Tax Act. The answer to this question will apply to all four categories of cases enumerated by us in paragraph 4 of this judgment. 170. The appeals from the impugned judgments of the High Court of Karnataka are allowed, and the aforesaid judgments are set aside. The ruling of the AAR in Citrix Systems (AAR) (supra) is set aside. The appeals from the im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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