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Delhi High Court - Orders

The Commissioner Of Income Tax - ... vs Adobe Systems Software Ireland Limited on 8 February, 2022

Author: Manmohan

Bench: Manmohan, Navin Chawla

                              $~3
                              *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +     ITA 161/2020
                                    THE COMMISSIONER OF INCOME TAX - INTERNATIONAL
                                    TAXATION -1                                           ..... Appellant
                                                        Through     Mr. Ruchir Bhatia, Advocate.

                                                        versus

                                    ADOBE SYSTEMS SOFTWARE IRELAND LIMITED
                                                                        ..... Respondent
                                                        Through     Mr. Vishal Kalra, Advocate.

                                    CORAM:
                                    HON'BLE MR. JUSTICE MANMOHAN
                                    HON'BLE MR. JUSTICE NAVIN CHAWLA
                                            ORDER

% 08.02.2022 The hearing has been done by way of video conferencing. Learned counsel for the appellant fairly states that the issue in volved in the present appeal is covered by the recent decision of the Supreme Court in Engineering Analysis Centre of Excellence Private Limited vs. Commissioner of Income Tax & Anr., (2021) SCC Online SC 159 wherein it has been held as under:-

"173. Our answer to the question posed before us, is that the amounts paid by resident Indian end-users/distributors to non- resident computer software manufacturers/suppliers, as consideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:10.02.2022 12:46:25 India, as a result of which the persons referred to in section 195 of the Income Tax Act were not liable to deduct any TDS under section 195 of the Income Tax Act. The answer to this question will apply to all four categories of cases enumerated by us in paragraph 4 of this judgment."

In view of the aforesaid, no substantial question of law arises in t h e present appeal and the same is dismissed.

MANMOHAN, J NAVIN CHAWLA, J FEBRUARY 8, 2022 AS Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:10.02.2022 12:46:25