2024 (2) TMI 692

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..... s fallen in error in making the deletion. After the judgement of Hon ble Supreme Court in the case of Engineering Analysis Centre of Excellence Private Limited [ 2021 (3) TMI 138 - SUPREME COURT] wherein held the receipts as non-taxable in for AY 2018-19 and 2019-20, as concluded that the impugned receipts were not in the nature of royalty within the meaning of Article 12 of India-Japan DTAA the issue with regard to taxability of the income from the sale of Software licenses subscription, stands settled and same is followed by ld. CIT(A), so there is no infirmity in the impugned orders, requiring interference. Decided against revenue.
Dr. B.R.R. Kumar, Accountant Member And Shri Anubhav Sharma, Judicial Member For the Assessee : Shri Vi .....

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..... e products does not constitute royalty income, despite review petition of revenue against said judgement is pending before SC. III) The revenue craves leave to add, alter, amend or vary from the above grounds of appeal at or before the time of hearing. 3. Heard and perused the record. 4. At the time of hearing, it came up that the admitted facts are that the assessee is a company incorporated under the laws of Japan and is a part of Dassault Systemes group. The assessee is a non-resident for the purposes of the Act. It is engaged in the distribution software products developed by its associate enterprises and provision of implementation and related services to customers in Asia Pacific region. 5. During the year under consideration, th .....

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..... e Court in the case of Engineering Analysis Centre of Excellence Private Limited vs CIT [2021] 125 taxmann.com 42. Copy of the final assessment order passed by the AO for AY 2018-19 and 2019-20 have been filed. 8.6 In view of overall discussion made above and respectfully following Hon'ble Supreme Court decision in the case of Engineering Analysis Centre of Excellence Private Limited vs CIT [2021] 125 taxmann.com 42 and Hon'ble ITAT/AAR/CIT(A) decisions referred above and considering that the AO has himself held the receipts as non-taxable in for AY 2018-19 and 2019-20, it is concluded that the impugned receipts were not in the nature of royalty within the meaning of Article 12 of India-Japan DTAA. The addition made by AO is deleted. This .....

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