Royalty received in pursuance to agreement entered into before 1976 is not covered u/s. 115A of the Income Tax Act

Mumbai bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Siemens Aktiencesellschaft Vs. DCIT [201 1-TII-52-ITAT-MUM-INTL held that royalty received by the Siemens Aktiencesellschaft (taxpayer) was in pursuance of an agreement entered into before 1976 and therefore not covered under Section 115A of the Income-tax Act, 1961 (the Act). Accordingly, the taxpayer was subject to 50 percent tax on such royalties. Facts of the case • The taxpayer, a non-resident German company, entered into a 10- year agreement with Bharat Heavy Electricals Ltd (BHEL) in June 1974 (1974 agreem...