Sale of Software Licenses not constitutes Royalty

BMC Software Asia Pacific Pte Ltd. Vs ACIT (International Tax) (ITAT Pune) Facts of the case: ♦ The assessee is a Singapore based company, which has not filed its Income Tax Return for the AY 2010-11. However, the assessee company has earned income from sale of Software Licenses and income from Support, Maintenance and Training services during the year under consideration. ♦ The Assessing officer “AO” has initiated re-assessment proceedings u/s 148 of the Tax Act. Contention of Department: ♦ The AO has opined that the payment received by the assessee for supply of software and rendit...