JUDGMENT :

MANMOHAN, J.

1. Present appeals have been filed under Section 260A of the Income Tax Act, 1961 [for short ‘Act’] challenging the judgment and order passed by ITAT on 13th May, 2019 for the Assessment Years 1997-98 and 1999-2000.

2. Learned counsel for the appellant-Revenue submits that ITAT has erred in holding that licensing of software products of Microsoft in the Territory of India by the Respondent was not taxable in India as Royalty under Section 9(1)(vi) of the Act read with Article 12 of the Indo US DTAA.

3. He states that the Tribunal has failed to appreciate that the distribution model in the case of the respondent-assessee involved making of multiple copies of the software clearly indicating transfer of copyright.

4. Having heard learned counsel for the appellant, this Court finds that the issue raised in the present appeals is no longer res integra as the Supreme Court in Engineering Analysis Centre of Excellence Private Limited vs. Commissioner of Income Tax and Anr., (2021) SCCOnLine SC 159 has held has under:-

“…4. The appeals before us may be grouped into four categories:

i) The first category deals with cases in which computer software is purchased directly by a