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2024 (1) TMI 269 - AT - Income TaxIncome taxable in India - royalty receipts - subscription revenue received by the assessee - addition u/s 9(1)(vi) and Article 12(3) of India-USA DTAA - assessee is a foreign Company - HELD THAT:- We note from the submissions that the issue has been decided by the coordinate bench of the Tribunal in assessee’s own case for assessment year 2016-17 [2023 (9) TMI 252 - ITAT BANGALORE] and considering the submissions of the assessee that the facts and agreement made with the Indian entities are the same as submitted by the ld.AR in this assessment year. We also observe from the order that the issue is squarely covered in favour of the assessee to hold that the payment made for viewing the videos on the database cannot be termed as consideration for use or right to use any industrial, commercial or scientific equipment. Thus we hold that the subscription revenue received by the assessee is not taxable as ‘Royalty’ in the hands of the assessee under Article 12 of the India-USA DTAA read with the provisions of the Act. Accordingly, the impugned addition made by the AO in this regard, as upheld by the CIT(A) is hereby deleted. Decided in favour of assessee.
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