ORDER

PER SOUNDARARAJAN K., JUDICIAL MEMBER

This is an appeal filed by the revenue challenging the order of the NFAC, Delhi dated 04/09/2024 in respect of the A.Y. 2017-18.

2. The brief facts of the case are that the assessee is a company incorporated in the USA and is engaged in the business of developing, manufacturing and distribution of software products. The assessee company entered into agreements with the distributors / resellers / customers in India for supplying the software products and ancillary support services. The assessee filed their return of income declaring a Nil income and also claimed a refund. The assessee’s case was taken up for scrutiny and notice u/s. 143(2) was issued. During the scrutiny proceedings the AO asked for the details about the various payments received during the year from India whether the same was recognized as income or not. The AO also sought for the details about the reasons for not offering certain income for taxation. The assessee company submitted the details and submitted that they have received income from the sale of software products and from the sale of support services and the same is not taxable in India as per section 5 r.w.s. 9