Tax on royalty to foreign companies: SC Upholds Legality of Engineering Analysis Case

CIT Vs Gracemac Corporation (Supreme Court of India) The Supreme Court of India recently addressed the issue of taxability of royalty paid to foreign companies in the case of CIT Vs Gracemac Corporation. The court upheld the legality of the Engineering Analysis case, which had previously been decided by a Three Judge Bench. The case involved a delay-condoned Special Leave Petition (SLP) filed by the Commissioner of Income Tax (CIT) against Gracemac Corporation. The petitioner contended that the issues raised in the SLP were already answered in the Engineering Analysis Centre of Excellence Priv...