ITAT Again Follows Its Own Precedents: Qualcomm Royalty from Foreign OEMs Not Taxable in India

Qualcomm Incorporated Vs DCIT (ITAT Delhi)

Assessee, a USA-resident corporate owning extensive CDMA/3G/4G/5G patent portfolios, received royalty from global OEMs for manufacture of subscriber units & infrastructure equipment outside India. For AYs 2018-19 & 2022-23, AO & DRP once again taxed royalty from non-resident OEMs u/s 9(1)(vi)(c) & Art.12(7)(b) of India-USA DTAA, following earlier assessments, despite a long line of consistent Tribunal rulings from AY 2000-01 to 2017-18 & AY 2021-22 holding such royalty as not taxable in India.

Assessee contended

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