Case Law Details
IBM Singapore Pte Ltd. Vs DCIT (ITAT Banglore)
As per the decision rendered by Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Pvt. Ltd., sale proceeds received by the assessee on sale of software licenses cannot be categorized as “Royalty” within the meaning of provisions of DTAA.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
These cross appeals are directed against the order dated 28.9.2018 passed by Ld. CIT(A)-12, Bangalore and they relate to the assessment year 2014-15.
2. At the time of hearing, the Ld A.R did not press grounds 2.1 to 2.10 relating to assessment of amount received as reimbursement of expenses treating the same as “Fee for technical services”. Accordingly, those grounds are dismissed as not pressed. Ground No.1 is general in nature. Ground Nos.3.2 to 3.15 relate to the assessment of sale proceeds received on sale of software licenses as “Royalty income”.
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