Income Tax Appellate Tribunal - Bangalore
6 cases · page 1 of 1
Bea Systems Inc. v.Deputy Director of Income-tax (International Taxation), Circle 1(1), Bangalore
The dispute concerned whether payments received by M/s. BEA Systems Inc., from its Indian subsidiary for the distribution of 'shrink-wrapped software' constituted royalty, leading to tax deduction at source requirements. The Tribunal upheld the lower authorities' view that the payment was indeed royalty.
Samsung Electronics Company Limited v.Assessee
The appeal challenged the assessment that payments made by Samsung Electronics to DSP Asia Pte Ltd. for purchasing 'shrink-wrapped software' constituted royalty, thereby requiring TDS deduction under Section 195 of the Income Tax Act. The Tribunal upheld the revenue's view, citing a previous judgment in the assessee's own case where the High Court had held that such payments were indeed royalty.
Kwality Biscuits Pvt. Ltd. v.Asst. Commissioner of Income-tax Circle-11(5), Bangalore
Kwality Biscuits Pvt. Ltd. transferred its intellectual property rights (trade marks, designs, and copyrights) related to 'Kwality' biscuits to M/s.Britania Industries Ltd. for ₹30 crores. The Assessing Officer taxed this receipt as long-term capital gains, arguing that the transfer included the right to manufacture. The Tribunal ultimately held that the right to market was distinct from the right to manufacture.
Mphasis Bfl Ltd. v.Income Tax Officer (Taxation)
The assessee, Mphasis Bfl Ltd., challenged the demand raised by the Income Tax Officer regarding non-deduction of tax at source on payments made for purchasing computer software from non-residents. The core issue was whether these payments constituted royalty under the Income Tax Act, given that the company only acquired a right to use the software, not the underlying copyright.
Bpl Refrigeration Ltd. v.Assistant Commissioner Of Income Tax
The assessee, Bpl Refrigeration Ltd., paid Rs. 6 crores to M/s BPL Ltd. for the right to use the registered trademark "BPL" for ten years. The Assessing Officer and CIT(A) held that this transaction was a sham designed for tax avoidance and disallowed the expenditure. The Tribunal ruled that since the payment was not an outright purchase but a limited-period license, it constituted admissible revenue expenditure.
Bpl Refrigeration Limited v.Asst. Commissioner Of Income Tax
The assessee, Bpl Refrigeration Limited (part of the BPL Group), paid Rs. 6 crores to M/s. BPL Limited for the right to use the registered trade mark "BPL" for ten years. The Assessing Officer and CIT(A) held that this was a sham transaction designed for tax avoidance and disallowed the expense. The Tribunal ruled in favor of the assessee, finding that the payment was legitimate revenue expenditure.
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