TMI Blog2022 (10) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee is an internationally renowned university engaged in research, the provision of education, publishing and the provision of examination services. During the year under consideration, it undertook these activities through three divisions. The three divisions are: (i) The University itself which undertakes research and degree level education; (ii) Cambridge University Press which publishes and distributes academic literature and journals; and (iii) Cambridge assessment which provides examination services, specifically related to the setting and marketing of internationally recognized examinations. 5. During A.Y. 2012 13, the assessee had receipts of Rs. 31,55,95,947/ and in A.Y to 2014 15, receipts were Rs. 51,86,82 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DTAA, we have to consider the treatment given by the Assessing Officer in light of the relevant Article of India-UK DTAA. 12. Article 13(3)of India-UK DTAA, Royalty has been defined as : a) payments of any kind received as a consideration for the use of, or the right to use, any copyright of a literary, artistic or scientific work, including cinematography films or work on films, tape or other means of reproduction for use in connection with radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience;.. 13. A perusal of the afore-stated Article of the India- UK DTAA shows that the transaction shall fall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration for the resale/use of the computer software through EULAs/distribution agreements, is not the payment of royalty for the use of copyright in the computer software, and that the same does not give rise to any income taxable in India, as a result of which the persons referred to in section 195 of the Income-tax Act were not liable to deduct any TDS under section 195 of the Income-tax Act. The answer to this question will apply to all four categories of cases enumerated by us in paragraph 4 of this judgment. 170. The appeals from the impugned judgments of the High Court of Karnataka are allowed, and the aforesaid judgments are set aside. The ruling of the AAR in Citrix Systems (AAR) (supra) is set aside. The appeals from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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