Software — India Other Cases

Microsoft Regional Sales Corporation v.Deputy Director of IT, C/o S.R. Batliboi & Co

The petitioner, Microsoft Regional Sales Corporation, challenged additions made by the Assessing Officer regarding its revenue receipts from licensing Microsoft products. The core issue was whether these payments constituted taxable royalty income in the hands of the assessee. The Tribunal followed a previous ITAT decision and held that although the amount constitutes royalty, it is not assessable in the petitioner's hands.