Karnataka High Court
The Commissioner Of Income Tax vs Tejas Networks India Ltd on 21 February, 2012
Bench: N.Kumar, Ravi Malimath
IGH COURT OF KARNATAKAHIGH COURT OF KARNATAKA HIGH COURT OF Ke RNATAKS HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH CO IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED: 21 Day of February,2012. PRESENT HON'BLE Mr.JUSTICE N KUMAR AND -- HON'BLE Mr JUSTICE RAVI MAI LIMATH income Tax Appeal . io.10 ric | 1.
THE COMMISSIONER OF INCOME. TAX INTERNATIONAL TAXATION, RASTROTHANA RUILOING, 7 NRUPATUNGA ROAD, > BAN GALORE. .
2. THE INCOME TAX OFFIC ER;
INTERNATIONAL TAXATION,
-. RASTROTHANA BUILDING,
- NRUPATUNGA ROAD, BANGALORE. a ae . APPELLANTS [By Sri K V Aravind, Adv,] : "And:
"TRJAS NETWORKS INDIA LTD.
. 38T FLOOR, ZONE-2,
-KHANIJA BHAVAN, | -NG.49, RACE COURSE ROAD, BANGALORE, ..RESPON DENT L-
a 'question of law was as under:
4IGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH C [BY SMT. VANI.H. ADVOCATE) THIS APPEAL IS FILED UNDER SECTION 260-A.. OF "TE a INCOME TAX ACT, 1961, AGAINST THE ORDER DATED 2.03.2006. PASSED IN ITA NO. 1455/BANG/2004 FOR THE ASSESSMENT. YEAR. 2001-02 AND ETC., . .
THIS APPEAL COMING ON FOR FINAL HEARING, THIS DAY, N KUMAR, J., DELIVERED THE FOLLOWING: oe The Revenue has preferred 'this appeal against the order passed by the Tribunal whtich has granted relief to the agsessee following the Judgment of the Tribunal dated 29.9.2005 in ITA. No, 3707-3711 Oy Bang/ 2004 in the case of M/s. Hewle:t-Peckard Dia] Pet Lid.
2. In fact, the mboinc question of law which arises for considerstion in this appeal arose for consideration before thie court in two appeals, firstly, in the case of Coumersarona or INCOME TAX AND ANOTHER v.
: _ SYNOPSIS INTERNATIONAL QLD LTD.,' in ITA Nos.11 to a "15/2008 decided on 3.8.2010 where the substantial | --
fala within the mischief of 'royalty' as defined under sub-
IGH COURT OF KARNATAKAHIGH COURT OF KARNATAKA HIGH COURT OF KARNATAK4 HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH CO 3 "Whether the consideration paid by the . Indian customers or end users to the assessee---q foreign supplier, for transfer of the right to use thie ma software/computer programme in respect of the an copyrights falls within the mischief of royalty" as defined under sub-clause [vu] to Explanation 2 2 fo. Clause [vi] of section Ol} of the Ad .
3. Again in the case of 'COMMIBSTONER OF INCOME :
TAX AND ANOTHER v. SAMBUNG KERCTRONICS PRIVATE LIMITED' in ITA No. 2808/ 2008 and connected matters decided on 15.10. 2011, the "substantia question of law framed is as under: we So a *The quest Yon "which the 'High Court will answer is ~~ whether on facts and circumstances of the case, the iTAT was justified in holding that the amount{[s} paid bu the appeltant{[s} to the foreign software suppliers was not 'royalty' and that the same did not give rise to any 'income' taxable in India. and, therefore, the appellant{s} / Was not Hable to deduct any tax at source?"
4, in both the cases, it was held that consideration
- pad by the indian customers or end users to the agsessee -- a foreign. supplier, for transfer of the right to use the
- : software/ computer programme in respect of the copyrights | tIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH C 4 Clause [v] to Explanation 2 to Clause [vil of section Q[1] of the Income Tax Act, 1961.
the substantial questions of law framed int this cage ere also O° answered in favour of the revenus and againct t the aSSessee,
6. Ordered accordingly.
7. Appeal ia allowed, Sd/-
JUDGE Sd/-
JUDGE