Revenue appealed against Tribunal's decision holding software sale proceeds and related support service receipts were not royalty/FTS income of the assessee for AY 2015-16. The Court found no reason to depart from its earlier decision in the assessee's own case and dismissed the appeal.
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NC: 2025:KHC:39642-DB ITA No. 672 of 2023
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 8TH DAY OF OCTOBER, 2025
PRESENT
THE HON'BLE MR. JUSTICE B M SHYAM PRASAD AND
THE HON'BLE MR. JUSTICE T.M.NADAF INCOME TAX APPEAL NO. 672 OF 2023
BETWEEN:
BANGALORE
Digitally signed by MADHUSHREE H Location: High Court of Karnataka
…APPELLANTS
(BY SRI. E. I. SANMATHI, ADVOCATE)
HC-KAR
AND:
…RESPONDENT
(BY MS. TANMAYEE RAJKUMAR., ADVOCATE)
THIS ITA/INCOME TAX APPEAL IS FIILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 05/08/2021 PASSED IN IT(TP)A NO.2867/BANG/2018, FOR THE ASSESSMENT YEAR 2015-2016 PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAY BE FORMULATED BY THE HONBLE COURT AS DEEMED FIT AND SET ASIDE THE APPELLATE ORDER DATED 05/08/2021 PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, A BENCH, BENGALURU, AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEES CASE, IN APPEAL
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PROCEEDINGS NO. IT(TP)A NO.2867/BANG/2018 FOR A.Y.2015-2016 (Annexure-A).
THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD and HON'BLE MR. JUSTICE T.M.NADAF
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE B M SHYAM PRASAD)
The Revenue has called in question the order dated 05.08.2021 in IT(TP)A No.2867/Bang/2018 on the file of the Income Tax Appellate Tribunal "A" Bench, Bengaluru [for short, ' the Tribunal ']. The Tribunal has allowed the assessee's appeal relevant to the Assessment Year 2015-16 holding that the receipts of sale value of the software and provision of ancillary support services connected with such sale
HC-KAR
cannot be assessed as royalty/FTS income in the
hands of the assessee.
Mr. E. I. Sanmathi, the learned Senior standing
counsel for the Revenue, proposes to argue in support of the appeal relying upon the substantial questions of law proposed, but Ms. Tanmayee Rajkumar, the learned counsel for the assessee, submits that the Tribunal's decision is in the light of this Court's order in I.T.A. No.7/2019 relevant to the Assessment Year 2011-12 and that this decision is because of the Apex Court's decision in Engineering
Analysis Centre for Excellence Private Limited
Vs. Commissioner of Income Tax and Another reported in AIR 2021 SC 124 .
This Court must observe that if in the assessee's own case for the other Assessment Year an opinion is rendered resulting in the final conclusion as aforesaid, there cannot be any reason for coming to another conclusion, especially when the factual
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matrix remains the same. As regards the review, it would suffice for this Court to observe that the Co-ordinate Benches of this Court have disposed of similar matters reserving no liberty. A reference in this regard could be made to the judgment of a Co-ordinate Bench of this Court in Income Tax Appeal No. 708/2023 decided on 12.08.2025 . This Court does not find any reason to make an exception in reserving liberty.
Therefore, the appeal stands dismissed.
Sd/(B M SHYAM PRASAD) JUDGE
Sd/(T.M.NADAF) JUDGE
RB
1 issue framed by the court
Whether receipts from sale of software and ancillary support services could be assessed as royalty/FTS income in the assessee's hands for AY 2015-16.
Colour shows how this judgement treated each authority
Income Tax Appeal No. 708/2023 decided on 12.08.2025Referred
1 provisions across 1 enactments
Pr. Commissioner of Income Tax - International Taxation Koramangala, Bangalore
The Deputy Commissioner of Income Tax International Taxation, Circle 1(2) Koramangala, Bangalore
M/s Informatica LLC
B M Shyam Prasad
T.M.Nadaf
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
