High Court held that the Tribunal was justified in deleting the addition made on account of recharacterization of receipts from sale of software licenses to Indian customers/distributors as royalty. Relied on Engineering Analysis Centre of Excellence (P.) Ltd. v. CIT (2021) 432 ITR 471 / 281 Taxman 19 (SC). High Court affirmed the order of the Tribunal. SLP of Revenue dismissed. (AY. 1999-2000 to 2001-02)
DIT (IT) v. Microsoft Regional Sales Corporation (2023) 294 Taxman 519 (SC) Editorial: DIT(IT) v. Microsoft Regional Sales Corporation (2023) 151 taxmann.com 309 (Delhi)(HC)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Software receipts-Tribunal was justified in deleting addition made in hands of assessee on account of recharacterization of receipts from sale of software licenses to Indian customers/distributors as royalty-DTAA-India-USA-SLP of Revenue dismissed. [S. 260A, Art. 12]