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2022 (10) TMI 450 - AT - Income TaxIncome deemed to accrue or arise in India - Royalty Income - amount received for conducting research activities, which are in the nature of various rights transferred by the assessee to its Indian customers for commercial use - As per CIT-A revenue received by the assessee on account of granting various licences is not taxable as ‘Royalty Income’ and so also the amount received for conducting research activities, which are in the nature of various rights transferred by the assessee to its Indian customers for commercial use - HELD THAT:- In our considered opinion, as per section 90 subsection (2) of the Act, where India has executed a tax treaty, then, the non-resident assessee has the option of being taxed under the tax treaty to the extent its provisions are more beneficial and based upon provisions of India-UK DTAA, we have to consider the treatment given by the Assessing Officer in light of the relevant Article of India-UK DTAA. Article 13(3)of India-UK DTAA shows that the transaction shall fall under the ambit of Royalty only when payments are received from a buyer to exploit the underlying copyrights of an article or payment is made for information concerning industrial, commercial or scientific experience. We are of the considered view that the impugned quarrel is now well settled by the decision of the Hon'ble Supreme Court in favour of the assessee and against the Revenue in the case of Engineering Analysis Center of Excellence Pvt Ltd.[2021 (3) TMI 138 - SUPREME COURT] - we find no reason to interfere with the findings of the ld. CIT(A) and direct the Assessing Officer to delete the impugned addition. Decided in favour of assessee.
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