Question 1

What are the key legal issues in The Deputy Commissioner of Income Tax, Circle – 1(2), Bengaluru Vs. M/s. Blue Yonder Inc?

Accepted Answer

1. Taxability of sale of software to third-party customers in India. 2. Taxability of maintenance/installation/consulting/support services to third-party customers in India.

Question 2

What are the facts of The Deputy Commissioner of Income Tax, Circle – 1(2), Bengaluru Vs. M/s. Blue Yonder Inc?

Accepted Answer

The case involves appeals against three separate orders of the Commissioner of Income Tax (Appeals)-12, Bengaluru, passed under section 250 of the Income Tax Act, 1961, for the assessment years 2015-16 to 2017-18. The assessee, M/s. Blue Yonder Inc, had filed appeals against the assessment orders for these years. The appeals were heard together and disposed of by a consolidated order. The issues raised pertain to the taxability of: (i) sale of software to third-party customers in India, (ii) maintenance/installation/consulting/support services to third-party customers in India, and (iii) reimbursement of cost from the Indian entity. The assessee had not disclosed receipts from the sale of software, licenses/annual maintenance services, software implementation & consultancy services from various customers in India. The assessment was completed under section 143(3) r.w.s. 144C of the Act by bringing to tax the above-said receipts. The assessee filed appeals before the First Appellate Authority, which were decided in favor of the assessee. The revenue, aggrieved by the orders, filed appeals before the Tribunal.

The Deputy Commissioner of Income Tax, Circle – 1(2), Bengaluru Vs. M/s. Blue Yonder Inc

Parties Involved

Facts Summary

Legal Issues

Judgment Outcome

Precedents Relied Upon

Similar Judgements