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2014 (7) TMI 221 - HC - Income TaxPayments for the equipment and spare parts – Royalty u/s 9(1)(vi) of the Act – Held that:- The decision in Haldor Topsoe A/s Denmark Jeevan Vihar Annexure Versus The Addl Commr of Income Tax (International Taxation) [2013 (5) TMI 491 - ITAT MUMBAI] followed - The contention of Mr. Pinto cannot be accepted that the widest possible meaning of the term 'royalty' and as found in the definition of the term in the explanation (2) would include the transaction under which payment has been made for supply of Converters - the agreement postulates the payment for the equipment - The technical information that is provided is related to data plant specification flow sheet which are issued in the installation of the plant - there is no transfer of rights in the nature contemplated by clauses (i) to (v) of the Explanation 2 so as to be termed as 'royalty' - the equipment was supplied to the Indian party and for which the Indian party made payment - The contract in relation to a contract included stipulations for giving all information so as to guide the Indian party to install the equipment at site and thereafter to use it - this is a mixed question and a finding of fact has been rendered considering the peculiar facts and circumstances. The payment was found to be made towards the supply of equipment and that too on 'principal to principal' basis – relying upon Commissioner of Income Tax v/s Gulf Oil (Great Britain) Ltd. [1975 (8) TMI 17 - BOMBAY High Court] – the order is not vitiated by any error of law apparent on the face of the record and/or suffering from any perversity enabling us to entertain the Appeal – thus, no substantial question of law arises for consideration and the order of the Tribunal is upheld – Decided against Revenue.
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