Subscription income received by a foreign entity from Indian clients is not Royalty in accordance with the India-Ireland tax treaty

Court: Mumbai bench of the Income-tax Appellate Tribunal Citation: Gartner Ireland Ltd Vs. DDIT (ITA No. 1452/Mum/08) (Mum) Brief :Mumbai bench of the Income-tax Appellate Tribunal held that subscription income received by a foreign entity from Indian clients is not in the nature of Royalty in accordance with the India-Ireland tax treaty (tax treaty).  Further, the Tribunal relying on various Supreme Court decisions observed that the orders of the higher appellate authorities should be followed by the subordinate authorities and non compliance of this rule will result into undue harassment t...