Royalty received under BREW Operator agreement not taxable under India-US DTAA

Qualcom Technologies Inc. Vs DCIT (ITAT Delhi)

ITAT held that Considering the assessment order of the AO wherein he has followed the findings given in earlier assessment years and considering the fact that the same agreement is being carried on since A.Y.2005-06, we do not find any reason in differing with the view taken by this Tribunal (supra), therefore, respectfully following the finding of the coordinate Bench (supra) we hold that the royalty from BREW Operator agreement is  not  chargeable  to tax in the hands of the assessee and also  the  revenue  received under the test tools We direct the AO to delete the impugned additions.

FULL TEXT OF THE ORDER OF ITAT DELHI

ITA No.660/Del/2019 and 191/Del/2021 are two separate appeals by the assessee preferred against the two separate orders of the CIT(A)-43, New Delhi dated 03.05.2019 and 05.02.2020 pertaining to A.Y.2015-16 and 2016-17 respectively.

2. Since common grievances are involved in these appeals, they were heard together and are disposed of by this common order for the sake of convenience and brevity.

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