Karnataka High Court
The Commissioner Of Income Tax vs M/S Sunray Computers Pvt Ltd on 21 October, 2011
Bench: V.G.Sabhahit, Ravi Malimath
FEAT has 33: aside the Grder passed by th€ as$essing_T'Q<§}:er axzizigh has bsfizz aceyzfirzneezi by the 3§§}€H3.§1«*fi _ fo£is*a;:':2g the judgment passefi by {ha £'fé¥,£'».V W Eiecironics Co. Ltd vs. {:0 {ms}: {$4 I_?'E'};;'§ gmsa§3%g:%%% haiding that payment mafia itgyfihe féssgficndergt iiit:
appellant before the {TAT t<;wé:i:°:i.$' purciiaaé rjvf scfitware is net rayalty.
2. {TA by the revenue being by the ETA? in ETA N031 1 f0;'" ifiéVv: assessment yseaz' 1999 2000 " file {TAT by order dated :31:~1G~2QGi§"~171M»s§«:i V fiziixzment made by the assesses n A_i0aa72_:'1?€:§.s ggurghasew"§fv--.$s>*"tWare is 2101: mjiaity, by seiiing aside :£:.:;&.-3 ':;;:o1iev:i4Vi;>2{vs$§;%:}-.§3§f ihe aiagfiiiaifi aathsrity and cenfirming i:he.:§:'zi€rVfpa;é;é:~é€E 33:; tbs asgesgirzg afficsz" zszhsrsizz it was heié féihai;§'a'L§?f;§1::ff}'§5'Z:1a§6 is}? me mspgzaéezzai is 3. myaity. .,:/';y
3. Tm: s:2b3I:,e1n::.211 <:;u€~3ii0n 5}? law ihaji ;%.*€s;i-:é-- §Qr fi€€€§'I1}§}."I:é1§',i€)Z3 in zhess 2:pp€23;E$ are as U.i"}CI€I'2 "Whe'zh€1" or: faciis a§:§:1'<:ié'::uii:s£a':p::'e;s Qfihé case, the ETA? was jtzsiiiied';1.n"hQi<fiI':f§"«. that the amounfis} paid 'E3},?'éhe a:>§.»:é§.'1é:n'1[sj". ':0 the fareign scgfigxfiigfiré: St;:ppEi.erS "myalty" and that Sanle dVi'e:§_ri'0i -give' rise ta any 'incfime' §_a_i~;a_bis_V in Lfiiia fand. therefers, appéHan€'[}~;} me? }iabE€ is deoiuct any 3gisom_I'ce"?~'? ' AA .
«ii. 'We appearing fer ihé appeliagxiéjid India had Technoiogies, ELSEA. for the asse8sme:r§:"--..§%ea,rV' -E_§AQ.;§%:-'£500 and 2€3€}O-O1. They haé Sepafatsigi i:npoi*:'@:§._____h;%.rdwaI'€ from Lucem Technalsgiesg '?§:i'V»:aVn.-._v"1*.'::i:«.§;§"{3§ inflated p:':>C€€d:'ng§ unéa" §e<::iiG:2 EGEEEE} 331:3: "i38E{E2iIE:----a§7 the A621; aggaéngi; figs 8;SS€SS€€ £35 fgiiure to 'V éeduéié iéqi, 31%;: source in §"€S§€::T?; Q? paymezzi mafia '£0 Lucezzé; ' »7,':"é::":"';---2:;0§£:>§3§:e3., §jS;5g 591" {E36 sssfmrare §:§":p:3r€s3:i. Tsithziséegies, Taiwarz, Snly afilsr receipi 3%' bath 'i§"E€ S-6-':_fiwa;1's and £135 haréwarix, aha}; have '@6623 §:::eg:*aé€:ei by iE:é§.'a.:éé:-géésée in India 21:25? thezrsafisr suppiied U3 E/he Dap2--fi;n¢.r§Ti '7i;<5§€'; Conzmunicaéisng as an end §:"«:3dr..z,;::i; fir: ié:i:133".z:g§ I:1j1e assessees if1d€§€1"§d€f}i' CCiE1'i;f8..C{: .' r' recorfiefi by Eha Tnibunai bfiéizamifiifig .i:a{_:saci::--€::ns 6;. the assesses, :12 re§_p€Ct 'i?_;f;i23$.aC€§<:>;f;sl§<3f Luceni figchnelagieaé USA? flgttsr of liability tie £32; in India '§'r1€:17€:i"::e.:.%§'V&a3V1;:;}%;1§:'£;{:s;« ':".féensesquently the to royalty an& is hablé 9{E}{Vi} read with the DouZ:i6 TaXé;€i'Qn_«Agr€&::n€_n§¢ _ _ , E}. " €.'v,"=::=:1i";=-"m£é§i<:>';{1e3:" Qf Aggseaig has also receydsd 3;V""f§Vfi{fi'£?§V"'¥.'.l'§ai ir:V"'éCs:C:1'da:;Ce wiéh {ha seceéad pm:/:30 is €326 Asa a Eampsum @335? by {E163 r€$§o::d;e::E i::_C§Lud:fi§"':.§'§€ gragiing of ficsncs in resgsci af cenmuier $0f?;aé;2'3:*{~; sugplmd by any zssideni manufacturad aigng with .;;h€"r:§mg3z§.::::* GE' <:{>:':;:>::isr bégssé €Q'ali§fS€§E'{ Lif1§€§' 31:31 :35 éhé "zj_;«§,§ 63 3?;
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ice': $2"; 213 appeai-3}:".T;::'€