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2020 (10) TMI 936 - AT - Income TaxIncome accrued in India - taxability of receipts from the sale of software as royalty - receipts of royalty income being in nature of payment for use of copyright in a process and transfer of information of commercial or industrial nature - Copyright vs Copyrighted Article - India-Sweden DTAA - HELD THAT:-Since the facts of the instant assessment year are identical to the facts of the two preceding assessment years decided by the Tribunal in assessee’s own case relying on INFRASOFT LTD. [2013 (11) TMI 1382 - DELHI HIGH COURT] and NOKIA NETWORKS OY [2012 (9) TMI 409 - DELHI HIGH COURT]we set aside the order of the Ld. CIT(A) and hold that consideration received by the assessee for sale of software cannot be treated as royalty under the provision of section 9(1)(vi) of the Act as well as Article 12 of the India-Sweden DTAA and that the sale of software products by the assessee to its Indian distributors for further sale to end users is not in the nature of transfer of “copyright” and therefore not taxable in the hands of the assessee as “royalty” under the provision of section 9 (1)(vi) of the Act as well as Article 12 of the India-Sweden DTAA. - Decided in favour of assessee.
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