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2023 (7) TMI 394 - AT - Income TaxIncome accued in India - taxability of subscription charges received by the assessee as “Royalty” u/Article–12(3) of India–USA DTAA and u/s 9(1)(vi) - subscription revenue received by the assessee in Chemical Extract Service and Publication division - assessee is a scientific society based in the USA that supports scientific enquiry in the field of chemistry - HELD THAT:- As respectfully following the orders passed in assessee’s own case [2019 (4) TMI 1818 - ITAT MUMBAI] as held what is acquired by the customer is a copyrighted article, copyrights of which continue to lie with assessee for all purposes. It is a well settled law that copyrighted article is different from a copyright, and that consideration for the former, i.e. a copyrighted article does not qualify as royalties. Thus, the principles noted by us in the earlier part of this order in the context of the income earned by way of CAS fee are squarely applicable to the subscription revenue received from customers of PUBS division for sale of journal also, and accordingly PUBS fee also does not qualify as 'Royalty' in terms of section 9(1)(vi) of the Act as well as Article 12(3) of the India-USA DTAA.” Thus we uphold the plea of the assessee and delete the impugned addition in respect of the subscription fee received by the assessee under Chemical Abstract Service and Publications division. Decided in favour of assessee.
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