High Court of Delhi · Judgments and reasoned final orders
Commissioner of Income Tax (International Taxation)-3 v. Veritas Storages Singapore Pte. Ltd.
ITA 307/2025 & ITA 309/2025 ·
Non-taxability of receipts from (i) sale of hardware appliances, (ii) sale of software licences, (iii) maintenance support and services related to software licences, and (iv) education and training services; remand to ITAT declined as futile where the ancillary maintenance and training issues are squarely covered in favour of the assessee by CIT (Intl. Tax.)-3 v. TSYS Card Tech Ltd. (ITA No. 165/2024 decided 16.07.2024).
1. FACTS OF THE CASE
By assessment order dated 27.06.2022 for AY 2020-21, the AO taxed receipts of Veritas Storages Singapore Pte. Ltd. under four heads: (i) sale of hardware appliances, (ii) sale of software licences, (iii) maintenance support and services related to software licences, and (iv) education and training services. The ITAT allowed the assessee's appeals citing Engineering Analysis. In ITA 307/2025 & 309/2025, the Revenue sought a remand to the ITAT to adjudicate heads (iii) and (iv).
2. DISCUSSION BY THE COURT
The Division Bench agreed that the ITAT's reasoning had only cited Engineering Analysis without separately dilating on (iii) maintenance support and (iv) education and training services. However, Junior Standing Counsel for the Revenue could not dispute Senior Counsel's submission that both remaining issues were squarely covered in favour of the assessee by the coordinate bench judgment dated 16.07.2024 in CIT (International Taxation)-3 v. TSYS Card Tech Ltd. (ITA No. 165/2024). Consequently, remanding the matter to the ITAT would be an empty and futile exercise.
3. JUDICIAL DECISION
Declining to order a futile remand, the High Court dismissed both ITA 307/2025 and ITA 309/2025 along with all pending applications.
4. OUTCOME
Assessee - Both Revenue appeals dismissed; deletion of additions across all four software/hardware/support/training streams upheld.
5. AKHB REVIEW POINT
Even where an ITAT order omits separate discussion of ancillary software maintenance and training receipts while applying Engineering Analysis, the Delhi High Court will not remand the appeal since those streams are independently covered against the Revenue by TSYS Card Tech Ltd. (ITA 165/2024).
Source and verification
5-page official High Court of Delhi judgment PDF (DLHC011242932024_1_2026-05-12.pdf, 46,186 bytes).
Original PDF: 5 pages · SHA-256: 5a8c78c574809e21009d25d435d798dbae752d9ac30ca9327f23b32b8d3d0326
Supplied source-reviewed note retained; original bytes and identity validation checked in this release. Substantive re-review is not claimed for this record.
Applies Sections 9(1)(vi), 9(1)(vii), and 90 of the Income-tax Act, 1961 read with the India-Singapore DTAA for AY 2020-21. Income-tax Act, 2025 equivalence is not verified.
Full 5-page primary judgment PDF text read and verified page-by-page. Follows Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT (2022) 3 SCC 321 (SC) and CIT (Intl. Tax.)-3 v. TSYS Card Tech Ltd. (ITA No. 165/2024, Del HC, decided 16.07.2024).
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