IT/ILT : Where assessee in course of rendering software development services to its parent company located abroad, made payment of engineering services availed by said parent company from another Indian company and made it available to assessee, payment so made was to be regarded as 'fee for included services'
IT/ILT : Where it was not apparent as to whether software expenses paid by assessee to its parent company was towards right to use a copyrighted article or right to use copyright in said software, payment in question could not be regarded as 'royalty' under article 12 of India-Canada DTAA
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[2015] 53 taxmann.com 300 (Hyderabad - Trib.)
IN THE ITAT HYDERABAD BENCH 'A'
AMD Research & Development Center India (P.) Ltd.
v.
Deputy Commissioner of Income-tax, Circle 1(2), Hyderabad*
P.M. JAGTAP., ACCOUNTANT MEMBER
AND SAKTIJIT DEY, JUDICIAL MEMBER
IT APPEAL NOS. 692 TO 695 (HYD.) OF 2014
[ASSESSMENT YEARS 2007-08 TO 2010-11]
OCTOBER 22, 2014
Section 9 of the Income-tax Act, 1961 read with article 12 of the Indian-Canada DTAA - Income - Deemed to accrue or arise in India (Royalties) - Assessment years 2007-08 to 2010-11 - Whether where assessee in course of rendering software development services to its parent company located in Canada, made payment of certain engineering services availed by parent company from another Indian company and made it available to assessee-company, payment so made was to be treated as 'fee for included services' liable to tax in India - Held, yes [Para 41] [In favour of revenue]
Section 9 of the Income-tax Act, 1961, read with article 12 of the DTAA between India and Canada - Income - Deemed to accrue or arise in India (Royalties) - Assessment years 2007-08 to 2010-11 - Whether where assessee made payment of software expenses to its parent company, since it was not apparent from records as to whether amount in question was paid for right to use a copyrighted article or right to use copyright in said software, payment in question could not be regarded as 'royalty' within meaning of article 12 of India-Canada DTAA - Held, yes [Para 57] [Matter remanded]
IT/ILT : Where it was not apparent as to whether software expenses paid by assessee to its parent company was towards right to use a copyrighted article or right to use copyright in said software, payment in question could not be regarded as 'royalty' under article 12 of India-Canada DTAA
■■■
[2015] 53 taxmann.com 300 (Hyderabad - Trib.)
IN THE ITAT HYDERABAD BENCH 'A'
AMD Research & Development Center India (P.) Ltd.
v.
Deputy Commissioner of Income-tax, Circle 1(2), Hyderabad*
P.M. JAGTAP., ACCOUNTANT MEMBER
AND SAKTIJIT DEY, JUDICIAL MEMBER
IT APPEAL NOS. 692 TO 695 (HYD.) OF 2014
[ASSESSMENT YEARS 2007-08 TO 2010-11]
OCTOBER 22, 2014
Section 9 of the Income-tax Act, 1961 read with article 12 of the Indian-Canada DTAA - Income - Deemed to accrue or arise in India (Royalties) - Assessment years 2007-08 to 2010-11 - Whether where assessee in course of rendering software development services to its parent company located in Canada, made payment of certain engineering services availed by parent company from another Indian company and made it available to assessee-company, payment so made was to be treated as 'fee for included services' liable to tax in India - Held, yes [Para 41] [In favour of revenue]
Section 9 of the Income-tax Act, 1961, read with article 12 of the DTAA between India and Canada - Income - Deemed to accrue or arise in India (Royalties) - Assessment years 2007-08 to 2010-11 - Whether where assessee made payment of software expenses to its parent company, since it was not apparent from records as to whether amount in question was paid for right to use a copyrighted article or right to use copyright in said software, payment in question could not be regarded as 'royalty' within meaning of article 12 of India-Canada DTAA - Held, yes [Para 57] [Matter remanded]
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