This appeal by the revenue is directed against order dated 31/01/2018 passed by the Ld.
IN THE INCOME TAX APPELLATE TRIBUNAL,
DELHI BENCH: ‘D’ NEW DELHI
BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER
SHRI O.P. KANT, ACCOUNTANT MEMBER
[Through Video Conferencing]
Assessment Year: 2013-14
Taxation) Circle 1 (2) (2)
Digital Route AB Gurgaon
C/o PWC & Co. Building
No.10, 17th Floor, Tower-C,
DLF Cyber, Gurgaon 122002
PAN No. AAECD4628G
Appellant by Sh. E. V. Bhaskar, Sr. DR
Respondent by Sh. K. M. Gupta, Advocate
Sh. Mohit Jain, CA
Date of hearing 28.07.2021
Date of pronouncement 28.07.2021
This appeal by the revenue is directed against order dated 31/01/2018 passed.
2.Briefly stated facts of the case are that the assessee is a tax resident of Sweden and filed its return of income for
the assessment year under consideration on 31/03/2015 declaring total income of Rs.3,68,95,442/-.
3.Before us the parties appeared through video conferencing facility and filed electronically decisions relied upon.
4.The Ld. Counsel of the assessee submitted that issue in dispute is covered in favour of the assessee by the
decision of the Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence (P) Ltd vs CIT reported in 432 ITR 471 (SC).
5.We have heard rival submission of the parties on the issue in dispute. In the case, the issue in dispute is
whether the supply of the software by the assessee company is taxable as royalty under the DTAA between the India and the Sweden or it should be a sale Simpliciter, which is taxable as business income if the assessee has a Permanent Establishment in India. In the case the Assessing Officer has treated the sale of the software as royalty taxable in India.
6.The grounds raised by the revenue are accordingly dismissed.
7. In the result, the appeal of the revenue is dismissed.
Order pronounced in the open court.
Please find attached the enclosed file for the full judgement