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2022 (2) TMI 820 - ITAT DELHIIncome accrued in India - Taxability of Royalty Payment - payments received by the assessee on sale of software to India resellers/distributors is in the nature of ‘Royalty’ chargeable to tax u/s 9(1)(vi) of the Act and under Article 12 of the India – USA Double Taxation Avoidance Agreement [DTAA] - HELD THAT:- A careful perusal of the agreement entered into by the assessee with the resellers in India and keeping in mind the aforementioned specific clauses, in our considered opinion, it is clear that such agreements are entered into solely for the sale of software products and not in any way entail transfer of patent, copy right or any other intellectual property right. The quarrel is squarely covered in favour of the assessee and against the Revenue by the decision of the Hon'ble Supreme Court in a land mark judgment in the case of Engineering Analysis Center of Excellence Pvt Ltd.[2021 (3) TMI 138 - SUPREME COURT]. Thus we are of the considered view that no right in copy right is being transferred and accordingly, consideration received by the assessee cannot be brought to tax as per India – USA DTAA. - Decided in favour of assessee.
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