Software license distribution - Dependent Agent Permanent Establishment (DAPE) - Remunerating DAPE agent at arm's length whether it absolves further attribution of income

Facts: Assessee was Irish subsidiary of Adobe USA. They were found to be licensing their software thru Indian distributors. Revenue's reading was there was a DAPE in India thru Adobe India and thru the distributors and accordingly attribution of income was done which was also confirmed by DRP. On higher appeal -

Held in favour of the assessee that once the DAPE or agent is remunerated at arm's length price there cannot be further attribution of income for the assessee in India. Issue of existence of DAPE was kept open (as inconsequential due to ALP price application to the DAPE).

Applied: Own cases of assessee of earlier years.

Case: Adobe Systems Software Ireland Ltd. v. ACIT 2023 TaxPub(DT) 1564 (Del-Trib)