S. 9(1)(vi): Income from licence of software assessable as “royalty”

 

CIT vs. Samsung Electronics Co Ltd (Karnataka High Court)

S. 9(1)(vi): Income from licence of software assessable as "royalty"

The assessee imported "shrink-wrapped"/ "off-the-shelf" software from suppliers in foreign countries and made payment for the same without deducting tax at source u/s 195. The AO & CIT (A) held that the payments were assessable to tax as "royalty" u/s 9(1)(vi)/ Article 12 and that the assessee was liable to pay the tax u/s 201. On appeal, the Tribunal relied on the judgement of the Supreme Court in Tata Consultancy Services vs. State of AP 271 ITR 401 (SC) and held that the assessee had acquired a "copyrighted article" but not the "copyright" itself and so the amount paid was not assessable as "royalty". On appeal by the department, HELD reversing the Tribunal:

(i) U/s 9(1)(vi) of the Act & Article 12 of the DTAA, "payments of any kind in consideration for the use of, or the right to use, any copyright of a literary, artistic or scientific work" is deemed to be "royalty". Under the Copyright Act, 1957, a software programme constitutes a "copyright". A right to make a copy of the software and use it for internal business by making copy of the same and storing it on the hard disk amounts to a use of the copyright u/s 14 (1) of that Act because in the absence of such a licence, there would have been an infringement of the copyright. Accordingly, the argument that there is no transfer of any part of the copyright and the transaction involves only a sale of a copyrighted article is not acceptable. The amount paid to the supplier for supply of the "shrink-wrapped" software is not the price of the CD alone nor software alone nor the price of licence granted. It is a combination of all. In substance unless a licence was granted permitting the end user to copy and download the software, the CD would not be helpful to the end user;

(ii) There is a difference between a purchase of a book or a music CD because while these can be used once they are purchased, software stored in a dumb CD requires a license to enable the user to download it upon his hard disk, in the absence of which there would be an infringement of the owner's copyright. (TCS vs. State of AP distinguished as being in the context of sales-tax);

Note: The same view has been taken in Microsoft/ Gracemac 42 SOT 550 (Del), Millennium IT Software Ltd 338 ITR 391(AAR) & ING Vysya Bank Ltd 61 DTR 401( Bang) while a contrary view has been taken in Motorola Inc 96 TTJ 1 (Del) (SB) & TII Team Telecom International 60 DTR 177. See also Is Income From Software Taxable As "Royalty"?

Related Judgements
CIT vs. Samsung Electronics (Karnataka High Court) The effect of the judgement of the Supreme Court in Transmission Corporation of India 239 ITR 587 is that the moment there is a payment to a non-resident, there is an obligation on the payer to deduct tax at source u/s 195 (1). The only way to escape the…
In Re Millennium IT Software Ltd (AAR) S. 9(1)(vi) & Article 12 define the term "royalty" to include any payment for the use of, or the right to use, a "copyright" of scientific work. Software programmes are a "copyright" and are protected under the Copyright Act, 1957. As the software programme is a "copyright", any payment…
Kansai Nerolac Paints vs. ADIT (ITAT Mumbai) The effect of the judgements in Tata Consultancy Services vs. State of AP 271 ITR 401 (SC), Samsung Electronics Co 94 ITD 91 (Bang), Motorola Inc 95 ITD 269 (SB) & Dassault Systems 229 CTR 105 (AAR) is that the primary condition for coming within the definition of `royalty'…

INCOME TAX REPORTS (ITR) Volume 343 : Part 2 (Issue dated 7-5-2012) SUBJECT INDEX TO CASES REPORTED IN THIS PART

INCOME TAX REPORTS (ITR)

Volume 343 : Part 2 (Issue dated 7-5-2012)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

HIGH COURTS

Assessment --Reference to Departmental Valuation Officer--Change of law of with retrospective effect--Effect--Construction in factory building relating to assessment year 1984-85--Reference by Assessing Officer to Departmental Valuation Officer--Not justified--Income-tax Act, 1961, s. 142A-- CIT v. Nabha Solvex (P) Ltd .

(P&H) . . . 178

Business expenditure --Expenditure on higher education of two directors of assessee--Disallowance on ground directors are children of managing director--Not proper--Assessing Officer to consider whether assessee entitled to claim deduction under section 37(1)--Income-tax Act, 1961, ss. 37(1), 144(1)(b)-- Krishna Fabrications Ltd . v. Joint CIT (Asstt.) (Karn) . . . 126

Capital gains --Transfer--Slump sale--Agreement for transfer of business as going concern--Not of itemised assets--Capital gains not chargeable--Income-tax Act, 1961, s. 45-- CIT v. Polychem Ltd. (Bom) . . . 115

Reassessment --Notice--Assessing Officer finding that claim of depreciation bogus--Notice valid--Income-tax Act, 1961, s. 148-- Indo European Breweries Ltd. v. ITO (Bom) . . . 195

----Notice--Non-resident company deriving income by maintaining and operating super computer sold to Government of India--Assessment order showing Assessing Officer aware of nature and character of obligation performed for which consideration paid--Reassessment on ground agreement between assessee and Government not produced before Assessing Officer--Not proper--Income-tax Act, 1961, ss. 147, 148-- CIT v. Cray Research India Ltd. (Delhi) . . . 212

----Reassessment after four years--Condition precedent--Failure to disclose material facts necessary for assessment--Meaning of "primary facts"--Claim for special deduction under sections 80HHC and 80-IB--Audited accounts and auditor's report submitted--Special deductions allowed--Reassessment notice after four years on ground that special deductions were excessive--Notice not valid--Income-tax Act, 1961, s. 147-- CIT v. Purolator India Ltd. (Delhi) . . . 155

----Reassessment after four years--Condition precedent--Failure to disclose material facts necessary for assessment--No such failure--Reassessment to correct errors in assessment--Not valid--Income-tax Act, 1961, s. 147-- Titanor Components Ltd . v. Asst. CIT (Bom) . . . 183

----Reassessment after four years--Permissible on basis of disclosures made by assessee in assessment for subsequent year--Disclosures not made in year in question--Amounts to failure to disclose material facts--Income-tax Act, 1961, ss. 10A, 147, 148-- Siemens Information Systems Limited v. Asst. CIT (Bom) . . . 188

----Reassessment after four years--Validity--No failure to disclose material facts necessary for assessment--Deduction of expenditure in original assessment--Reassessment proceedings to disallow expenditure--Not valid--Income-tax Act, 1961, s. 147-- BLB Limited v. Asst. CIT (Delhi) . . . 129

----Validity--Failure to disclose material facts necessary for assessment--Details regarding loan not furnished--Assessment order for assessment year 1999-2000 that loan from sister concern was assessable as deemed dividend--Reassessment proceedings to assess such loans as deemed dividend in assessment year 2000-01--Valid--Income-tax Act, 1961, s. 147-- Atma Ram Properties Private Limited v. Deputy CIT

(Delhi) . . . 141

----Validity--Reassessment after four years--Failure to disclose material facts necessary for assessment--Loans from sister concern--Facts disclosed by assessee--Failure to assess loans as deemed dividends--Reassessment proceedings not valid for assessment year 1999-2000--Income-tax Act, 1961, s. 147-- Atma Ram Properties Private Limited v. Deputy CIT (Delhi) . . . 141

Revision --Erroneous and prejudicial to Revenue--General principles--Special deductions under sections 80-I, 80-IA and 80HHC granted without allocation of expenditure to those units--Revision justified--Revision to allocate expenditure on green tea cess, interest and agency commission--Not justified--Income-tax Act, 1961, s. 263-- CIT v. Hindustan Lever Ltd. (Bom) . . . 161

AUTHORITY FOR ADVANCE RULINGS

Advance ruling --Authority--Jurisdiction--Prohibition where question in issue before authorities under Act--Application by Indian company whether tax deductible at source on payments to non-resident--Is in effect question of taxability of payments in hands of non-resident--Non-resident already assessed and appeal pending before Tribunal--Question already pending before income-tax authority--Application by Indian company not maintainable--Income-tax Act, 1961, ss. 195, 245N(a)(ii), 245R(2), 245S-- Nuclear Power Corporation of India Ltd. , In re . . . 220

----Maintainability--Question on which ruling sought already pending before income-tax authority--Application not maintainable--Date of filing return is date to be reckoned for determination whether question already pending before authority--Income-tax Act, 1961, s. 245R(2)-- WaveField Inseis ASA , In re . . . 136

Non-resident --Purchase of aircraft by Indian company from company incorporated in France--COFACE, body incorporated on behalf of French State, ensuring credit facility--Promissory notes, for principal and interest separately executed by Indian buyer in favour of foreign seller--Promissory notes irrevocably and unconditionally assigned by seller to BNP Paribas--Interest payable by Indian buyer to seller or to BNP not taxable in India--Income-tax Act, 1961, s. 195--Double Taxation Avoidance Agreement between India and France, art. 12(3)(b)-- Poonawalla Aviation Private Limited , In re

. . . 202

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Double Taxation Avoidance Agreement between India and France :

Art. 12(3)(b) --Non-resident--Purchase of aircraft by Indian company from company incorporated in France--COFACE, body incorporated on behalf of French State, ensuring credit facility--Promissory notes, for principal and interest separately executed by Indian buyer in favour of foreign seller--Promissory notes irrevocably and unconditionally assigned by seller to BNP Paribas--Interest payable by Indian buyer to seller or to BNP not taxable in India-- Poonawalla Aviation Private Limited , In re

(AAR) . . . 202

Income-tax Act, 1961 :

S. 10A --Reassessment--Reassessment after four years--Permissible on basis of disclosures made by assessee in assessment for subsequent year--Disclosures not made in year in question--Amounts to failure to disclose material facts-- Siemens Information Systems Limited v. Asst. CIT (Bom) . . . 188

S. 37(1) --Business expenditure--Expenditure on higher education of two directors of assessee--Disallowance on ground directors are children of managing director--Not proper--Assessing Officer to consider whether assessee entitled to claim deduction under section 37(1)-- Krishna Fabrications Ltd . v. Joint CIT (Asstt.)

(Karn) . . . 126

S. 45 --Capital gains--Transfer--Slump sale--Agreement for transfer of business as going concern--Not of itemised assets--Capital gains not chargeable-- CIT v. Polychem Ltd. (Bom) . . . 115

S. 142A --Assessment--Reference to Departmental Valuation Officer--Change of law of with retrospective effect--Effect--Construction in factory building relating to assessment year 1984-85--Reference by Assessing Officer to Departmental Valuation Officer--Not justified-- CIT v. Nabha Solvex (P) Ltd . (P&H) . . . 178

S. 144(1)(b) --Business expenditure--Expenditure on higher education of two directors of assessee--Disallowance on ground directors are children of managing director--Not proper--Assessing Officer to consider whether assessee entitled to claim deduction under section 37(1)-- Krishna Fabrications Ltd . v. Joint CIT (Asstt.)

(Karn) . . . 126

S. 147 --Reassessment--Notice--Non-resident company deriving income by maintaining and operating super computer sold to Government of India--Assessment order showing Assessing Officer aware of nature and character of obligation performed for which consideration paid--Reassessment on ground agreement between assessee and Government not produced before Assessing Officer--Not proper-- CIT v. Cray Research India Ltd. (Delhi) . . . 212

----Reassessment--Reassessment after four years--Condition precedent--Failure to disclose material facts necessary for assessment--Meaning of "primary facts"--Claim for special deduction under sections 80HHC and 80-IB--Audited accounts and auditor's report submitted--Special deductions allowed--Reassessment notice after four years on ground that special deductions were excessive--Notice not valid-- CIT v. Purolator India Ltd. (Delhi) . . . 155

----Reassessment--Reassessment after four years--Condition precedent--Failure to disclose material facts necessary for assessment--No such failure--Reassessment to correct errors in assessment--Not valid-- Titanor Components Ltd . v. Asst. CIT

(Bom) . . . 183

----Reassessment--Reassessment after four years--Permissible on basis of disclosures made by assessee in assessment for subsequent year--Disclosures not made in year in question--Amounts to failure to disclose material facts-- Siemens Information Systems Limited v. Asst. CIT (Bom) . . . 188

----Reassessment--Reassessment after four years--Validity--No failure to disclose material facts necessary for assessment--Deduction of expenditure in original assessment--Reassessment proceedings to disallow expenditure--Not valid-- BLB Limited v. Asst. CIT (Delhi) . . . 129

----Reassessment--Validity--Failure to disclose material facts necessary for assessment--Details regarding loan not furnished--Assessment order for assessment year 1999-2000 that loan from sister concern was assessable as deemed dividend--Reassessment proceedings to assess such loans as deemed dividend in assessment year 2000-01--Valid-- Atma Ram Properties Private Limited v. Deputy CIT

(Delhi) . . . 141

----Reassessment--Validity--Reassessment after four years--Failure to disclose material facts necessary for assessment--Loans from sister concern--Facts disclosed by assessee--Failure to assess loans as deemed dividends--Reassessment proceedings not valid for assessment year 1999-2000-- Atma Ram Properties Private Limited v. Deputy CIT (Delhi) . . . 141

S. 148 --Reassessment--Notice--Assessing Officer finding that claim of depreciation bogus--Notice valid-- Indo European Breweries Ltd. v. ITO (Bom) . . . 195

----Reassessment--Notice--Non-resident company deriving income by maintaining and operating super computer sold to Government of India--Assessment order showing Assessing Officer aware of nature and character of obligation performed for which consideration paid--Reassessment on ground agreement between assessee and Government not produced before Assessing Officer--Not proper-- CIT v. Cray Research India Ltd.

(Delhi) . . . 212

----Reassessment--Reassessment after four years--Permissible on basis of disclosures made by assessee in assessment for subsequent year--Disclosures not made in year in question--Amounts to failure to disclose material facts-- Siemens Information Systems Limited v. Asst. CIT (Bom) . . . 188

S. 195 --Advance ruling--Authority--Jurisdiction--Prohibition where question in issue before authorities under Act--Application by Indian company whether tax deductible at source on payments to non-resident--Is in effect question of taxability of payments in hands of non-resident--Non-resident already assessed and appeal pending before Tribunal--Question already pending before income-tax authority--Application by Indian company not maintainable-- Nuclear Power Corporation of India Ltd. , In re

(AAR) . . . 220

----Non-resident--Purchase of aircraft by Indian company from company incorporated in France--COFACE, body incorporated on behalf of French State, ensuring credit facility--Promissory notes, for principal and interest separately executed by Indian buyer in favour of foreign seller--Promissory notes irrevocably and unconditionally assigned by seller to BNP Paribas--Interest payable by Indian buyer to seller or to BNP not taxable in India-- Poonawalla Aviation Private Limited , In re (AAR) . . . 202

S. 245N(a)(ii) --Advance ruling--Authority--Jurisdiction--Prohibition where question in issue before authorities under Act--Application by Indian company whether tax deductible at source on payments to non-resident--Is in effect question of taxability of payments in hands of non-resident--Non-resident already assessed and appeal pending before Tribunal--Question already pending before income-tax authority--Application by Indian company not maintainable-- Nuclear Power Corporation of India Ltd. , In re

(AAR) . . . 220

S. 245R(2) --Advance ruling--Authority--Jurisdiction--Prohibition where question in issue before authorities under Act--Application by Indian company whether tax deductible at source on payments to non-resident--Is in effect question of taxability of payments in hands of non-resident--Non-resident already assessed and appeal pending before Tribunal--Question already pending before income-tax authority--Application by Indian company not maintainable-- Nuclear Power Corporation of India Ltd. , In re

(AAR) . . . 220

----Advance ruling--Maintainability--Question on which ruling sought already pending before income-tax authority--Application not maintainable--Date of filing return is date to be reckoned for determination whether question already pending before authority-- WaveField Inseis ASA , In re (AAR) . . . 136

S. 245S --Advance ruling--Authority--Jurisdiction--Prohibition where question in issue before authorities under Act--Application by Indian company whether tax deductible at source on payments to non-resident--Is in effect question of taxability of payments in hands of non-resident--Non-resident already assessed and appeal pending before Tribunal--Question already pending before income-tax authority--Application by Indian company not maintainable-- Nuclear Power Corporation of India Ltd. , In re

(AAR) . . . 220

S. 263 --Revision--Erroneous and prejudicial to Revenue--General principles--Special deductions under sections 80-I, 80-IA and 80HHC granted without allocation of expenditure to those units--Revision justified--Revision to allocate expenditure on green tea cess, interest and agency commission--Not justified-- CIT v. Hindustan Lever Ltd. (Bom) . . . 161

INCOME TAX REPORTS (ITR) Volume 343 : Part 1 (Issue dated 30-4-2012) SUBJECT INDEX TO CASES REPORTED IN THIS PART

INCOME TAX REPORTS (ITR)

Volume 343 : Part 1 (Issue dated 30-4-2012)

SUBJECT INDEX TO CASES REPORTED IN THIS PART

SUPREME COURT

Export --Special deduction--Computation of profits--Sale of DEPB credit--Sale value less value of DEPB--Ninety per cent. of receipt of nature mentioned in Explanation (baa)(1) included in profits alone to be deducted--Ninety per cent. of net interest or net rent, included in profits, and not of gross interest or gross rent, to be deducted--Income-tax Act, 1961, s. 80HHC, Expln. (baa)-- ACG Associated Capsules Pvt. Ltd. v. CIT

. . . 89

HIGH COURTS

Business expenditure --Royalty--Tribunal allowing expenses in earlier years--No question of law--Income-tax Act, 1961-- CIT v. Galaxy Surfactants Ltd .

(Bom) . . . 108

Charitable purpose --Registration of trusts--Commissioner--Power to cancel registration--Amendment of provision empowering Commissioner to cancel registration granted to trust under section 12A--Valid--Income-tax Act, 1961, s. 12AA(3)-- Sinhagad Technical Education Society v. CIT (Bom) . . . 23

Deduction of tax at source --Non-resident--Permanent establishment--Convention between India and Netherlands treating branch office in India as a separate entity--No obligation on part of branch office in India to deduct tax while making interest remittance to its head office or any other foreign branch--Double Taxation Avoidance Agreement between India and the Netherlands, arts. 5(2), 7(2)--Income-tax Act, 1961, ss. 40(a)(i), 195(1)-- ABN Amro Bank, N. V . v. CIT (Cal) . . . 81

Export --Deduction under section 10B--Loss in eligible unit could be set off against profits of business--Income-tax Act, 1961, s. 10B-- CIT v. Galaxy Surfactants Ltd.

(Bom) . . . 108

----Special deduction under section 80HHC--Conditions precedent--Export and receipt of sale proceeds in convertible foreign exchange--No condition that exports must be from India--Assessee purchasing goods from one foreign country and transporting it to another foreign country--Entitled to special deduction under section 80HHC--Income-tax Act, 1961, ss. 80HHC, 80HHE-- Anil Kumar v. ITO

(Karn) . . . 30

Interpretation of taxing statutes --Interpretation beneficial to assessee-- Anil Kumar v. ITO (Karn) . . . 30

Recovery of tax --Stay of recovery proceedings--Assessee appointed agent of State Government--Position accepted for assessment years 2003-04, 2004-05, 2005-06--Assessment and demand for tax for assessment year 2006-07--Appeal to Commissioner (Appeals) and application for stay of recovery proceedings--Direction for expeditious disposal of appeal and stay of demand till disposal of appeal--Income-tax Act, 1961-- City and Industrial Development Corporation of Maharashtra Ltd. v. Asst. CIT (Bom) . . . 102

Refund --Refund of income-tax and wealth-tax--General principles--Scope of article 265 of Constitution--Difference between tax collected or paid under statutes declared unconstitutional and tax collected or paid under valid statute but wrong interpretation of statute or wrong determination of facts--Constitution of India, art. 265--Income-tax Act, 1961--Wealth-tax Act, 1957-- Indglonal Investment and Finance Ltd . v. ITO

(Delhi) . . . 44

Revision --Jurisdiction--Limitation--Doctrine of merger--Order of assessment does not merge in orders of reassessment as regards issues not forming subject-matter of reassessment--Limitation for revision of assessment order in respect of those issues--Runs from date of assessment order not from date of reassessment orders--Income-tax Act, 1961, ss. 143(3), 148, 263(2)-- CIT v. ICICI Bank Ltd. (Bom) . . . 74

AUTHORITY FOR ADVANCE RULINGS

Advance ruling --Value as precedent--Income-tax Act, 1961, s. 245R(4)-- Citrix Systems Asia Pacific Pty. Limited, In re . . . 1

Royalty --Sale or licensing for use of copyrighted software is grant of right to use copyright--Payment therefor is royalty--Non-resident--Appointment of non-exclusive distributor of software products in India--Payment from distributor for sale of software product--Subscription for updates--Payment for subscription advantage programme--Royalty--Indian distributor to withhold taxes in India on payments--Income-tax Act, 1961, ss. 9(1)(vi), 195--Double Taxation Avoidance Agreement between India and Australia, art. 12-- Citrix Systems Asia Pacific Pty. Limited , In re . . . 1

Words and phrases --"Royalty"--"Licence"-- Citrix Systems Asia Pacific Pty. Limited , In re . . . 1

SECTIONWISE INDEX TO CASES REPORTED IN THIS PART

Constitution of India :

Art. 265 --Refund--Refund of income-tax and wealth-tax--General principles--Scope of article 265 of Constitution--Difference between tax collected or paid under statutes declared unconstitutional and tax collected or paid under valid statute but wrong interpretation of statute or wrong determination of facts-- Indglonal Investment and Finance Ltd . v. ITO (Delhi) . . . 44

Double Taxation Avoidance Agreement between India and Australia :

Art. 12 --Royalty--Sale or licensing for use of copyrighted software is grant of right to use copyright--Payment therefor is royalty--Non-resident--Appointment of non-exclusive distributor of software products in India--Payment from distributor for sale of software product--Subscription for updates--Payment for subscription advantage programme--Royalty--Indian distributor to withhold taxes in India on payments-- Citrix Systems Asia Pacific Pty. Limited , In re (AAR) . . . 1

Double Taxation Avoidance Agreement between India and the Netherlands :

Arts. 5(2), 7(2) --Deduction of tax at source--Non-resident--Permanent establishment--Convention between India and Netherlands treating branch office in India as a separate entity--No obligation on part of branch office in India to deduct tax while making interest remittance to its head office or any other foreign branch-- ABN Amro Bank, N. V . v. CIT (Cal) . . . 81

Income-tax Act, 1961 :

S. 9(1)(vi) --Royalty--Sale or licensing for use of copyrighted software is grant of right to use copyright--Payment therefor is royalty--Non-resident--Appointment of non-exclusive distributor of software products in India--Payment from distributor for sale of software product--Subscription for updates--Payment for subscription advantage programme--Royalty--Indian distributor to withhold taxes in India on payments-- Citrix Systems Asia Pacific Pty. Limited , In re (AAR) . . . 1

S. 10B --Export--Deduction under section 10B--Loss in eligible unit could be set off against profits of business-- CIT v. Galaxy Surfactants Ltd. (Bom) . . . 108

S. 12AA(3) --Charitable purpose--Registration of trusts--Commissioner--Power to cancel registration--Amendment of provision empowering Commissioner to cancel registration granted to trust under section 12A--Valid-- Sinhagad Technical Education Society v. CIT (Bom) . . . 23

S. 40(a)(i) --Deduction of tax at source--Non-resident--Permanent establishment--Convention between India and Netherlands treating branch office in India as a separate entity--No obligation on part of branch office in India to deduct tax while making interest remittance to its head office or any other foreign branch-- ABN Amro Bank, N. V . v. CIT (Cal) . . . 81

S. 80HHC --Export--Special deduction under section 80HHC--Conditions precedent--Export and receipt of sale proceeds in convertible foreign exchange--No condition that exports must be from India--Assessee purchasing goods from one foreign country and transporting it to another foreign country--Entitled to special deduction under section 80HHC-- Anil Kumar v. ITO (Karn) . . . 30

S. 80HHC, Expln. (baa) --Export--Special deduction--Computation of profits--Sale of DEPB credit--Sale value less value of DEPB--Ninety per cent. of receipt of nature mentioned in Explanation (baa)(1) included in profits alone to be deducted--Ninety per cent. of net interest or net rent, included in profits, and not of gross interest or gross rent, to be deducted-- ACG Associated Capsules Pvt. Ltd. v. CIT (SC) . . . 89

S. 80HHE --Export--Special deduction under section 80HHC--Conditions precedent--Export and receipt of sale proceeds in convertible foreign exchange--No condition that exports must be from India--Assessee purchasing goods from one foreign country and transporting it to another foreign country--Entitled to special deduction under section 80HHC-- Anil Kumar v. ITO (Karn) . . . 30

S. 143(3) --Revision--Jurisdiction--Limitation--Doctrine of merger--Order of assessment does not merge in orders of reassessment as regards issues not forming subject-matter of reassessment--Limitation for revision of assessment order in respect of those issues--Runs from date of assessment order not from date of reassessment orders-- CIT v. ICICI Bank Ltd. (Bom) . . . 74

S. 148 --Revision--Jurisdiction--Limitation--Doctrine of merger--Order of assessment does not merge in orders of reassessment as regards issues not forming subject-matter of reassessment--Limitation for revision of assessment order in respect of those issues--Runs from date of assessment order not from date of reassessment orders-- CIT v. ICICI Bank Ltd. (Bom) . . . 74

S. 195 --Royalty--Sale or licensing for use of copyrighted software is grant of right to use copyright--Payment therefor is royalty--Non-resident--Appointment of non-exclusive distributor of software products in India--Payment from distributor for sale of software product--Subscription for updates--Payment for subscription advantage programme--Royalty--Indian distributor to withhold taxes in India on payments-- Citrix Systems Asia Pacific Pty. Limited , In re (AAR) . . . 1

S. 195(1) --Deduction of tax at source--Non-resident--Permanent establishment--Convention between India and Netherlands treating branch office in India as a separate entity--No obligation on part of branch office in India to deduct tax while making interest remittance to its head office or any other foreign branch-- ABN Amro Bank, N. V . v. CIT (Cal) . . . 81

S. 245R(4) --Advance ruling--Value as precedent-- Citrix Systems Asia Pacific Pty. Limited, In re (AAR) . . . 1

S. 263(2) --Revision--Jurisdiction--Limitation--Doctrine of merger--Order of assessment does not merge in orders of reassessment as regards issues not forming subject-matter of reassessment--Limitation for revision of assessment order in respect of those issues--Runs from date of assessment order not from date of reassessment orders-- CIT v. ICICI Bank Ltd. (Bom) . . . 74