Dismissing the appeal of the revenue the Court held that the assessee is entitled to adopt rate of tax payable on royalty income in respect of both agreements entered into before 1-6-2005 and on or after 1-6-2005 as per provisions of section 115A(1)(b) or provisions of article 12 of Indo-US DTAA, which are more beneficial . Followed CIT (IT) v. IBM World Trade Corporation ( 2020) 120 taxmann.com 151 ( Karn) ( HC) (AY. 2013-14)
CIT (IT) v. IBM World Trade Corporation (2021) 281 Taxman 265 (Karn.) (HC)
S. 115A : Foreign companies – Tax – Royalty –Entitled to adopt rate of tax payable on royalty income in respect of both agreements entered into before 1-6-2005 as on or after 1-6-2005 as per provisions of section 115A(1)(b) or provisions of Article 12 of Indo-US DTAA, which were more beneficial- DTAA -India -USA [ S.90 , Art , 12 ]