PCIT Vs Oasis Centre LLC (Karnataka High Court)
Karnataka High Court held that challenge by revenue to the order of remand passed by Tribunal wouldn’t survive for further consideration hence appeal disposed of and question of taxability of software fees under DTAA not answered.
Facts- The assessee is a Foreign Company incorporated in United Arab Emirates (UAE) engaged in the business of operating, managing, leasing, running shopping malls and shopping centers. The assessee was in receipt of Rs.13.26 crorers of Oracle licence fee from 3 of its group entities for the assessment year 2016-17. The Assessing Officer held that the assessee is the owner of software licence and treated the payment received as “royalty” under Section 9(1)(vi) of the Income Tax Act, 1961.
CIT(A) allowed the appeal of the assessee. Being aggrieved by the remand order of Tribunal, revenue has preferred the present writ.
Conclusion- Held that the Assessing Officer during the pendency of this appeal, re-examined the issue and while passing the order giving effect has held that the receipt of Rs.13.26 crores is “royalty” in terms of Section 9(1)(vi) of the Act. In view of the order of Assessing Officer passing order giving effect to the order of remand, challenge to the order of remand passed by the Tribunal would not survive for further consideration. However, the contentions of both the parties are to be kept open. Accordingly, the appeal is disposed of. The questions raised in the appeal are not answered.
