Dismissing the appeal of the Revenue, 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. (AY. 1999-2000 to 2001-02)
DIT(IT) v. Microsoft Regional Sales Corporation (2023) 151 taxmann.com 309 (Delhi)(HC) Editorial : SLP of revenue dismissed, DIT (IT) Microsoft Regional Sales Corporation (2023) 294 Taxman 519 (SC)
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. [S. 260A, Art. 12]