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TMI Blog2022 (9) TMI 1634X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration towards ancillary support being treated as royalty. The relevant part of the order of the ld. DRP is as under: "The facts of the case are same as in AY 2015-16 and AY 2016-17, for which directions were issued on 23.03.2018 and 01.05.2019 respectively. The issue has been discussed in detailed from para iv. on page 3 of the directions to para xiii. In AY 2015-16. It was concluded therein as under: "xii. The Panel has considered the Dra ft assessment order, submissions of the assesses, the remand report and A's reply to the Remand Report, along with the order of the DRP for AY 2014-15. It is seen that the A' has now submitted the bifurcation of revenue from the sale of software license and the support services, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee and against the Revenue by the decision of the Hon'ble Supreme Court in a land mark judgment in the case of Engineering Analysis Center of Excellence Pvt. Ltd. [2021] 432 ITR 471 has laid down the following: "Given the definition of royalties contained in article 12 of the DTAAs 168 mentioned in paragraph 41 of this judgment, it is clear that there is no obligation on the persons mentioned in section 195 of the Income-tax Act to deduct tax at source, as the distribution agreements/EULAs in the facts of these cases do not create any interest or right in such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income-tax Act (section 9(1)(vi), along with Explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. Considering the facts of the case in totality, in light of the decision of the Hon'ble Supreme Court [supra], we direct the Assessing Officer to delete the impugned addition. 4. Since, the matter stands covered in the earlier order of the Co-ordinate Bench of the Tribunal, the appeal of the assessee on this ground is allowed. 5. Ground No. 12 & 13, the assessee has taken up the issue of refund and levy of interest u/s 234D of the Act. The similar matter has been ad judicated in the case of Maruti Suzuki in ITA Nos. 2553 & 2641/Del/2013 for A.Y. 1999-00 and ITA Nos. 468 & 599/Del/2014 for A.Y. 1994-95 vide order dated 31.08.2020. The AO is directed to follow the ratio laid down in the said order. 6. In the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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