Indian Kanoon - Search engine for Indian Law

The Finance Act 2012 inserted Explanation 4 to the Section 9(1)(vi) of the Act with retrospe - ctive effect from 1/06/1976. The same is reproduced below:

Explanation 4. - For the removal of doubts, it is hereby clarified that the transfer of all or any rights in respect of any right, property or information includes and has always included transfer of all or any right for use or right to use a computer software (including granting of a license) irrespective of the medium through which such right is transferred. From the amendment it is clear that it covers the transfer of all or any right for use/right to use of computer software including grant of licence.The amendment has been made to the section i.e., to domestic law.But,there is no corresponding change in Tax Treaty.It is also to be remembered that the assessee had already made the payment before the amendment was introduced.At the point of making payment to ASL,the assessee was not liable to deduct tax at source.So,now it cannot be compelled to deduct tax.The basic principal of taxation Aveva-3506/M/14+6 stipulates that nobody is supposed to perform the impossible.We find that in the case of B4U International Holding Ltd.(ITA/3326/Mum/2006)the Tribunal had held as under :-