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2019 (5) TMI 939 - AT - Income TaxIncome accrued in India - consideration received by assessee from the payer i.e. Sandvik Asia Pvt. Ltd. amounts to ‘royalty’ or ‘fees for included services’ or ‘fees for technical services under the realm of section 9(1)(vi) - provisions of DTAA between India and Sweden - HELD THAT:- The assessee, non-resident has received consideration against provision of software services from Sandvik Asia Pvt. Ltd. Once the Tribunal has held the same as not royalty either under the Income Tax Act or under DTAA provisions in the hands of payer i.e. Sandvik Asia Pvt. Ltd., consequently the said receipt by the assessee cannot be termed as ‘royalty’ under both the provisions of the Act i.e. section 9(1)(vi) / 9(1)(vii) or under Article 12 of the DTAA between India and Sweden. Accordingly, we hold that consideration received by assessee on providing software services is not taxable in its hands. The grounds of appeal No.2 and 3 raised by assessee on merits are thus, allowed Levying education cess and levying interest under section 234B are consequential in nature
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