This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 10 (23C): Educational institution-Donations-not wholly or substantially financed by Government of India-Matter remanded to the file of CIT(A) for reconsideration. [S. 10(23C)(iiiab)]

Joint CIT (OSD) (E) v. Deccan Education Society. (2023) 199 ITD 424 (Pune) (Trib.)

S. 10(2A) : Share income of partner- No distributable profits-Partnership firm had earned profit-Partner is eligible to claim exemption.

Davalagiri Property Developers (P.) Ltd. v. DCIT (2023) 199 ITD 416 (Bang) (Trib.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Business profits-Services rendered outside India-Cloud, colocation and network services, mainframe services, disaster/data recovery services-Infrastructure services to a US based company in US-Not taxable in India-DTAA-India-USA [Art. 12]

ITO (IT) v. Sungard Availability Services LP. (2023) 199 ITD 492 (Pune) (Trib.)

S. 9(1)(vii):Income deemed to accrue or arise in India-Royalty-Fees for technical services-Computer software-Use of standardized software through EULA agreements which were non-exclusive and non-transferable-Payment is not in nature of royalty-Not taxable in India-DTAA-India-USA. [S.9(1)(vi), Art. 12(4)(b)]

Kony Inc. v. DCIT (2023) 199 ITD 427 (Delhi) (Trib.)

S. 9(1)(vii) : Income deemed to accrue or arise in India-Fees for technical services-Providing consulting engineering services to an Indian entity-Contract specific-Make available-Not taxable as fees for technical services-DTAA-India-UK [Art. 13]

Buro Happold Ltd. v. DCIT (IT) (2023) 199 ITD 180 (Mum) (Trib.)

S. 9(1)(vii):Income deemed to accrue or arise in India-Fees for technical services-Use of equipments-Cannot be treated as royalty or fees for technical services-DTAA-India-Singapore [S. 9(1)(vi), Art. 12(4)(a)]

Adore Technologies (P.) Ltd. v. ACIT (2023) 199 ITD 385 (Delhi) (Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Vessel hire charges-Royalty-Fees for technical services-Charter contract for transporting coal from one port to another through its ship-Not royalty-Rightly offered to tax under section 44B of the Act-DTAA-India-UAE [S. 9(1)(vii) 44B, Art. 13]

Nan Lian Ship Management LLC v. ACIT (2023) 199 ITD 640 (Mum) (Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Permitting right to use of brand name/trademark-Taxable as royalties-DTAA-India-Turkey. [S. 2(47)Art. 12(3), 13(6)]

Soktas Tekstil Sanayi Ve Ticaret AS. v. ACIT (IT) (2023) 199 ITD 457 / 222 TTJ 312/ 223 DTR 339 (Delhi) (Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Computer software-Royalty-Income from sale of software to its distributor in India-Not in the nature of royalty-Not taxable in India-DTAA-India-Ireland.[S. 9(1)(vii), Art. 12]

Mentor Graphics (Ireland) Ltd. v. ACIT (IT) (2023) 199 ITD 147 (Delhi) (Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Sale of computer software products-Not royalty-DTAA-India-USA [Art. 12(3)]

Digite Inc. USA v. ADIT (IT) (2023) 199 ITD 18 (Delhi) (Trib.)