TMI BlogThe assessee, a non-resident corporate entity incorporated in Austria, earned income from the sale of...The assessee, a non-resident corporate entity incorporated in Austria, earned income from the sale of software licenses. The Assessing Officer (AO) computed the profit at 15% and taxed it at 40%, alleging that the assessee was not the economic owner of the IPs as most were registered outside Austria, primarily in the USA, and the assessee did not incur expenditure for developing the IPs. However, the Tribunal held that the assessee had substantial revenue from operations in different jurisdictions, including Austria, filed tax returns and was assessed by Austrian Revenue Authorities. The receipts from software license sales in India formed a small part of the total revenue. The allegation of treaty shopping was without credible reasoning. T..... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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