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7.1 Giving thoughtful consideration to the matter on re cord, the bench is o f co nside red view that the clo ud base se rvices do not ITA No. 312/ Del/ 2021 Micro soft Regional Sales Pte Ltd. New De lhi 9 invo lve any transfer o f rights to the customers in any process. The grant of right to install and use the software included with the subscription do es not include pro viding any copy o f the said so ftware to the customer. The assessee's clo ud base services are though based o n pate nts / copyright but the subscribe r do es not get any right o f repro duction. The services are provide d online via data centre located o utside India. The Cloud services merely facilitate the flo w of user data fro m the front end use rs through inte rnet to the provide r's system and back. The ld. AO has fallen in error in interpre ting it as licensing of the right to use the above Cloud Computing Infrastructure and Software (para 10.5 of the Ld. AO order). Thus the subscriptio n fee is not royalty but merely a conside ratio n fo r online access o f the clo ud computing Quasar Media Pvt. Ltd services for process and sto rage of data or run the applications.
7.2 While dealing with similar que stion in regard to the case of M/s. Salesforce.com Singapo re Pte . (supra) whe re the said assessee was pro vide r of comprehensive customer relatio nship management servicing to its customer by using Cloud Computing Services / Web Casting Service s, the Bench in its o rde r date d 25.03.2022 held as under :
"28. Conside ring the facts of the case in totality, in light o f the Maste r Subscription Agreement, we are of the considere d view that the custo mers do not have any access to the process o f the se rvice provider i.e. the assessee, and the assessee does no t ITA No . 312/De l/2021 Microsoft Regio nal S ales Pte Ltd. Ne w Delhi 10 have any access exce pt o therwise pro vided in the master subscription agreement to the data of the subscribe r.