THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 vs XIOCOM ( NZ) LTD

Judgment text excerpt

$~89 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 12.08.2025 + ITA 299/2025 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr. Anant Mann, JSC & Ms.Aditi Sabharwal, Advocate. versus XIOCOM (NZ) LTD .....Respondent Through: Appearance not given. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR V. KAMESWAR RAO, J. (ORAL) CM APPL. 49562/2025(Condonation of delay) 1. For the reasons stated in the application, the delay of 1080 days in re- filing the appeal is condoned. 2. The application stands disposed of. ITA 299/2025 3. The challenge in this appeal filed under Section 260A of the Income Tax Act, 1961(the Act) is to an order passed by the Income Tax Appellate Tribunal (ITAT) dated 17.02.2022, whereby the ITAT has dismissed the appeal filed by the Revenue by stating in paragraph 11 onwards as under: Signature Not Verified Signed By:AWANISH ITA 299/2025 Page 1 of 6 CHANDRA MISHRA Signing Date:13.08.2025 17:31:07 “11. We find that impugned quarrel has now been well settled by the judgment of the Hon’ble Supreme court in the case of Engineering Analysis Centre of Excellence Private Limited 432 ITR 471 wherein the Hon’ble Supreme Court has also considered the Judgment of Hon’ble Delhi High Court. The relevant finding of the Hon’ble Supreme Court read as under :- 168. Given the definition of royalties contained in Article 12 of the DTAAs mentioned in paragraph 41 of this judgment, it is clear that there is no obligation on the persons mentioned in section 195 of the Income-tax Act to deduct tax at source, as the distribution agreements/EULAs in the facts of these cases do not create any interest or right in such distributors/end-users, which would amount to the use of or