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2022 (6) TMI 881 - AT - Income TaxIncome accrued in India - Taxability of revenue from sale of software - whether income is not chargeable in appellant's hands under Income Tax Act, 1961 India-USA Double Taxation Avoidance Agreement ('DTAA') as the same was earned outside or India ? - HELD THAT:- Mumbai Tribunal in the case of DDIT v. Sawis Communication Corporation [2016 (5) TMI 635 - ITAT MUMBAI] has held that payment received for providing web hosting services though involving use of certain scientific equipment cannot be treated as 'consideration for use of, or right to use of, scientific equipment' which is a sine qua non for taxability u/s 9(1)(vi) read with Explanation 2(iva) thereto as also article 12 of Indo-US DTAA. Chennai Tribunal in the case of ACIT v. Vishwak Solutions Pvt. Ltd. [2015 (4) TMI 794 - ITAT CHENNAI] has upheld the findings of CIT(A) that "the amount paid to the non-resident is towards hiring of storage space." The aforesaid squarely covers the controversy in regard to the present assessee also. In the light aforesaid, the Bench is of considered view that the Ld. Tax Authorities below had fallen in error in considering the subscription received towards Cloud Services to be royalty income - Decided in favour of assessee.
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