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2016 (5) TMI 169 - AT - Income TaxPayment received from resellers in India for acquisition of computer software - whether are royalty in nature and hence chargeable to tax in India @ 15% as per Double Taxation Avoidance Agreement between India and USA ? - Held that:- Having noted that there is no material difference in the facts of the case for this year vis-à-vis the facts of the immediately preceding assessment year discussed above, respectfully following the views of the coordinate benches, we uphold the grievance of the assessee. It is, therefore, held that the receipts on account of receipts for software are not exigible to tax in India. The consideration received by the Assessee for software was not royalty. The receipts would constitute business receipts in the hands of the Assessee. Admittedly the Assessee who is a non resident does not have a permanent establishment and therefore business income of the Assessee cannot be taxed in India in the absence of a permanent establishment. The Assessing Officer is, therefore, directed to delete the impugned addition - Decided in favour of assessee
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