Case Law Details
Autodesk Asia Pte. Ltd. Vs ACIT (ITAT Bangalore)
It was the case of the assessee that the sale of software / hardware was made outside India and the proceeds received from Indian distributors / customers was received by the assessee outside India. In the draft Order of Assessment, the AO treated the money received by the assessee on sale of software licence along with associated hardwares to the Indian customers as in the nature of royalty and brought the same to tax. The assessee filed the objections before the Dispute Resolution Panel (DRP) against the action of the AO but the DRP confirmed the order of the AO. The AO passed the final Order of Assessment incorporating the addition made by the AO in the draft Assessment Order. The assessee is in appeal against the final Assessment Order dated 24.04.2019 before this Tribunal.
Learned Counsel for the assessee brought to our notice that on a similar issue in assessee’s own case for Assessment Year 2010-11 to 2013-14, this Tribunal in its order dated 14.06.2021 in IT(TP)A No.1758/Bang/2013, 294/Bang/2015, 489/Bang/2016, 191/Bang/2017 held that the amount received by the assessee cannot be regarded as royalty and therefore the same cannot be brought to tax.
Respectfully following the view by Hon’ble Supreme Court in case of Engineering Analysis Centre of Excellence Pvt. Ltd. Vs. CIT (Supra). We hold that purchase of software in the present facts does not amount to give rise to any taxable income in India as a result of which provisions of sec.195 of the Act are not attracted. The assessee does not have any obligation to deduct tax at source.
FULL TEXT OF THE ITAT JUDGEMENT
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