Case Law Details
Symantec Asia Pacific Pte Ltd Vs DCIT (ITAT Delhi)
Departmental authorities have accepted the factual position that the assessee does not have any Permanent Establishment (PE) in India. Thus, the issue which requires examination is whether the amount received by assessee towards sale of software products and provision of maintenance services would be taxable as royalty under Article 12 of India-Singapore DTAA. It is a fact on record that both the Assessing Officer as well as learned DRP have relied upon their earlier decision in assessee’s own case in assessment years 2013-14 and 2014-15 to hold that the amount received by assessee from the Indian customers is in the nature of royalty. However, While deciding the issue in assessment year 2013-14, the Tribunal in ITA No.1000/Del/2017 dated 31.08.2020 has held that the amount received by assessee from the customers in India does not fit into the definition of royalty as provided under Article 12 in India-Singapore DTAA. Identical view was expressed by the co-ordinate Bench while deciding assessee’s appeal in assessment year 2014-15 vide ITA No.3013/Del/2017 dated 15.04.2021. It is a matter of record that appeals filed by the Revenue against the aforesaid orders of Tribunal have been dismissed by the Hon’ble jurisdictional High Court. It is relevant to observe, the Hon’ble jurisdictional High Court dismissed the appeals of the Revenue after recording the admission of the learned counsel appearing for the Revenue that the issue is covered by the decision of the Hon’ble Supreme Court in case of Engineering Analysis Centre of Excellence Pvt. Ltd. vs. CIT in Civil Appeal No.8733 and 8734/2018. Thus, considering the fact that the issue in dispute is squarely covered by the decisions of the Tribunal and the Hon’ble jurisdictional High Court in assessee’s own case, as discussed above, we delete the addition made by the Assessing Officer.
FULL TEXT OF THE ORDER OF ITAT DELHI
Captioned appeal has been filed by the assessee assailing the final assessment order dated 30.05.2019 passed under Section 143(3) read with section 144C(13) of the Income-Tax Act, 1961 pertaining to assessment year 2016-17 in pursuance to the directions of learned Dispute Resolution Panel (DRP).
2. The core issue arising for consideration in the present appeal is, whether the consideration received from sale of software products is taxable as royalty under the provisions of India-Singapore Double Taxation Avoidance Agreement (DTAA).
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