IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8^TH DAY OF OCTOBER, 2025 PRESENT THE HON'BLE MR. JUSTICE B M SHYAM PRASAD AND THE HON'BLE MR. JUSTICE T.M.NADAF INCOME TAX APPEAL NO. 135 OF 2024 BETWEEN:

1. PR COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)

KORAMANGALA BANGALORE

2. THE INCOME TAX OFFICER INTERNATIONAL TAXATION, BMTC COMPLEX, D igitally signed KORAMANGALA by BANGALORE MADHUSHREE H Location: High Court of …APPELLANTS Karnataka (BY SRI. E. I. SANMATHI, ADVOCATE)

AND:

M/S ALTAIR ENGINEERING INC 1820, EAST BIG BEAVER ROAD, TROY M1 999999 UNITED STATES, PAN AAICA 7762Q REP BY ITS DIRECTOR …RESPONDENT (BY SRI. K.K.CHYTHANYA, SENIOR ADVOCATE FOR SRI. TATA KRISHNA., ADVOCATE)

THIS ITA/INCOME TAX APPEAL IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 4-12-2023 PASSED IN IT (IT)A NO.734/BANG/2023 FOR THE ASSESSMENT YEAR 2021-22 PRAYING TO DECIDE THE FOREGOING QUESTION OF LAW AND / OR SUCH OTHER QUESTIONS OF LAW AS MAYBE FORMULATED BY THE HONBLE COURT AS DEEMED FIT AND SET ASIDE THE APPELLATE ORDER DATED 4/12/2023 PASSED BY THE INCOME TAX APPELLATE TRI8BUNAL, C BENCH, BANGALORE AS SOUGHT FOR, IN THE RESPONDENT-ASSESSEES CASE, IN APPEAL PROCEEDINGS IN IT(IT)A NO.734/BANG/2023 FOR A.Y.2021-22 (ANNEXURE-A).

THIS APPEAL, COMING ON FOR ADMISSION FINAL HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD and HON'BLE MR. JUSTICE T.M.NADAF

ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE B M SHYAM PRASAD)

The Revenue is aggrieved by the order dated

04.12.2023 in IT(IT)A No.734/Bang/2023 by the Income Tax Appellate Tribunal "C" Bench, Bengaluru [for short, 'the Tribunal'], and the Tribunal's order is relevant to the Assessment Year 2021-22. The Revenue proposes substantial question on whether royalty could be charged in the facts and circumstances of this case, but Mr. K. K. Chythanya, the learned Senior counsel for the assessee - the respondent, places on record a copy of the order dated 12.08.2025 by a Co-ordinate Bench of this Court in Income Tax Appeal No.708/2023 to support the assessee's case that this question is no longer res integra as it is answered in its favour by the Coordinate Bench for the Assessment Year 2019-20.

Mr. E. I. Sanmathi, the learned Senior Standing Counsel for the Revenue, is heard and the records perused. It remains indisputable that a Co-ordinate Bench of this Court in the assessee's own case for the relevant Assessment Year 2019-20 in the afore appeal has upheld the assessee's case against the liability to pay royalty.

The Coordinate Bench's order in its material part reads as under:

"8. A careful perusal of the order of the Tribunal, it is clear that the Tribunal has analyzed the terms of the agreement and held that in view of the judgment of the Hon'ble Apex Court in the case of ENGINEERING ANALYSIS CENTRE OF EXCELLENCE (P) LTD., (supra) the amount in question regarding sale of software is not taxable as 'Royalty'.

9. This Court is of the view that the issue raised in the appeal is covered by the judgment of the Hon'ble Apex Court in ENGINEERING ANALYSIS CENTRE OF EXCELLENCE (P) LTD., (supra). The revenue has not demonstrated any difference in facts or in law. Hence, no substantial questions of law would arise for consideration. Accordingly, appeal stands dismissed."

In the light of the afore, the appeal is dismissed.

Sd/-

(B M SHYAM PRASAD)

JUDGE Sd/-

(T.M.NADAF)

JUDGE RB