The Court dismissed appeals under Section 260A of the Income Tax Act, 1961. The issue was whether a substantial question of law arose as the Revenue challenged the ITAT's view that payments to licensors were royalties under the Indo-Finland DTAA. The Court found the ITAT correctly applied binding precedents.
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Signature Not Verified Digitally Signed By:AM UL YA
For the reasons mentioned in the applications, the applications are allowed.
CM APPL. 46318/2016 (Exemption) in ITA 899/2016 CM APPL. 46320/2016 (Exemption) in ITA 900/2016
X Allowed, subject to all just exceptions.
ITA 898/2016, ITA 899/2016 & ITA 900/2016
The questions which the Revenue seeks to urge in these appeals under Section 260A of the Incpnie Tax Act, 1961 ('the Act') are common, i.e., whether the amounts paid by the assessee to its licensors, amounted to royalty within the meaning of the expression under Section 9(l)(vi) and Article 12 of the Indo-Finland Double Taxation Avoidance Agreement (DTAA). The Income Tax Appellate Tribunal (ITAT) followed the previous judgments of this Court including the judgment in DIT V. Infrasoft Ltd. 264 CTR 329 and also the judgment - DIT (International Taxation) vs. Nokia Networks OY 25 Taxman.com 255 (Delhi). The later decision had an occasion to interpret the same provision in the context of the very.same treaty.
Since the ITAT has followed the previous binding judgments of this Court, the present appeals do not raise a substantial question of law. The Court is also satisfied that the application of law by the ITAT was sound and proper. The appeals are therefore dismissed.
S. RAVIl^RA BHAT, J
NAJMIWAZIRI, J
DECEMBER 19,2016/acm
2 issues framed by the court
Whether the Court considers there is a substantial question of law given the ITAT followed binding precedents.
Whether the amounts paid by the assessee to its licensors amounted to royalty within Section 9(1)(vi) and Article 12 of the Indo-Finland DTAA.
S. Ravilrathna Bhat
Najmiweriri
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
