Income Tax Appellate Tribunal Delhi Dcit (International Taxation), New ... vs Micro Focus Ltd., Uk on 17 May, 2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BEFORE SHRI N. K. SAINI, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A .No. 3312/DEL/2016 (A.Y 200809) DCIT (International Taxation) Vs Micro Focus Ltd. Circle2(2) (1), Room No. 411, The Lawn, 2230, 4th Floor, E2, Block, Dr. S. P. Old Bath Road, Berkshire Mukherjee Civic Centre, Minto Road RG141QN, UK New Delhi AAGCM3842B (APPELLANT) (RESPONDENT) I.T.A .No. 2376/DEL/2016 (A.Y 200910) Micro Focus Ltd. Vs DCIT (International Taxation) C/o. Deloitte Haskins & Sells LLP Circle2(2) (2) 7th Floor, Bldg. 10B, DLF Cyber City, New Delhi PhaseII Gurgaon (RESPONDENT) AAGCS3842B (APPELLANT) I.T.A .No. 2377/DEL/2016 (A.Y 201011) Micro Focus Ltd. Vs DCIT (International Taxation) C/o. Deloitte Haskins & Sells LLP Circle2(2) (2) 7th Floor, Bldg. 10B, DLF Cyber City, New Delhi PhaseII, Gurgaon AAGCS3842B (RESPONDENT) (APPELLANT) I.T.A .No. 3313/DEL/2016 (A.Y 201112) DCIT (International Taxation) Vs Micro Focus Ltd. Circle2(2) (1), Room No. 411, The Lawn, 2230, 4th Floor, E2, Block, Dr. S. P. Old Bath Road, Berkshire Mukherjee Civic Centre, Minto Road RG141QN, UK New Delhi AAGCM3842B (APPELLANT) (RESPONDENT) I.T.A .No. 177/DEL/2017 (A.Y 201314) Micro Focus Ltd. Vs DCIT (International Taxation) The Lawn, 2230, Circle2(2) (1), Room No. 411, Old Bath Road, Berkshire RG141QN BlockE2, Civic Centre, J. L. UK N. Marg, New Delhi AAGCM3842B (APPELLANT) (RESPONDENT) Appellant by Sh. S. P. Singh, AR & Sh. Sharad Goyal, CA Respondent by Sh. Satpal Gulati, CIT DR Date of Hearing 23.03.2018 Date of Pronouncement 17.05.2018 ORDER PER SUCHITRA KAMBLE, JM These appeals are filed by the assessee & Revenue against the Order dated 30/03/2016 for A.Y. 200809 passed by CIT(A), order dated 19/01/2016 passed by the DCIT Circle 2(2)(1) u/s 144C(1) r.w.s. 147/143(13) of the Income Tax Act, 1961 for A.Y. 200910, order dated 19/01/2016 passed by the DCIT Circle 2(2)(1) u/s 144C(1) r.w.s. 147/143(13) of the Income Tax Act, 1961 for A.Y. 201011, order dated 30/03/2016 for A.Y. 201112 passed by CIT(A) and order dated 10.08.2016 passed by ACIT Circle 2(2)(1) u/s 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 for A.Y. 201314. 2. The grounds of appeal are as under: ITA No. 3312/Del/2016 (Assessment Year 200809) 1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was justified in holding that the consideration received by the assessee from various entities on account of sale of software is not royalty within the meaning of Article 13 of the IndiaUK DTAA ('DTAA'). 2. Whether the Ld. CIT(A) has erred in not considering the effect of Article 3(2) of the DTAA in terms of which any term not defined in the DTAA is deemed to have the same meaning as it has under the domestic law and therefore, the clarification provided in explanation 4 to section 9(l)(vi) of the Act can be used for interpreting the terms used in Article 13 of the DTAA. 3. Whether on stated facts and in law the Ld CIT(A) has erred in not giving the effect of the subsequent amendment to Section 9(l)(vi) of the Act and also whether the amount received for use of software would be royalty in terms thereof. 4. the appellant craves to add, amend, modify or alter any grounds of appeal at the time or before the hearing of the appeal. ITA No. 2376/Del/2016 (Assessment Year 200910) Appeal against the order under section 143(3) read with Section 144C(13) of the Incometax Act, 1961 ("the Act") dated 19 January 2016 for the Assessment Year 20102011 passed by the Deputy Commissioner of Income Tax, Circle 2(2)(1), Intl. Taxation, New Delhi 1. That on the facts and in the circumstances of the case and in law, the assessment order passed under section 144C(1) read with section 147/143(13) of the Incometax Act, 1961