By Ajay R. Singh, Advocate
3 Milestone Systems A/S vs.
Deputy CIT Circle Int Tax 2(2) (1) Delhi
[W.P.(C) 3639/2022, A.Y,: 2022 -23;
Dated: 14th March, 2023]
Section 197: Withholding tax certificate - Non application of mind – Binding effect of the Supreme Court judgement - merely filing/pendency of the review petition will not dilute the effect of the decisionsThe petitioner is a non-resident company, incorporated under the laws of Denmark. The petitioner, admittedly, has been issued a tax residency certificate by the concerned authorities in Denmark. It is the petitioner’s case that it is in the business of providing IP Video Management Software and other video surveillance related products to entities and persons across the globe. In so far as India is concerned, the petitioner claims, that it has entered into a Distributor Partner Agreement with various companies/entities for sale of its Software. It is the petitioner’s case, that the Distributor Agreement does not confer any right of use of copyright on its partners or the end user. The petitioner claims, that all that the distributor partner acquires under the Distributor Agreement is a license to the copyrighted software. It is, therefore, the petitioner’s case, that this aspect of the matter has been considered in great detail by the Supreme Court in the judgment rendered in
Engineering Analysis Center of Excellence Pvt Ltd vs. Commissioner of Income Tax & Anr 2021 SCC On
