Royalty taxation under the India-USA treaty denied where earlier rulings already favoured the assessee on similar facts.

Receipts were held not taxable in India as royalty under section 9(1)(vi) and Article 12 of the India-USA DTAA because the issue was already covered by coordinate bench rulings in the assessee's own case and by the jurisdictional HC on similar facts. The Tribunal found no distinguishing feature shown by the Revenue and followed the settled position for earlier assessment years. On that basis, the assessee was entitled to treaty protection and the income was not liable to tax in India.

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Issues: Whether the assessee's receipts were taxable in India as royalty under section 9(1)(vi) of the Income-tax Act, 1961 and Article 12 of the India-USA Double Taxation Avoidance Agreement, and whether the assessee was entitled to the benefit of the treaty so that the income was not liable to tax in India.

Analysis: The issue was covered by earlier coordinate bench decisions in the assessee's own case and by the jurisdictional High Court on similar facts. Following that settled position, the receipts were held not to be taxable in India. The Tribunal accepted the assessee's contention that the same issue had already been decided in its favour for earlier assessment years and that no distinguishing feature was shown by the Revenue.

Conclusion: The assessee's income was held not liable to tax in India.

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