Software royalty taxability under the India-US treaty upheld, with related grounds dismissed on identical facts.

Consideration for facilitating user rights in software to Indian entities was treated as royalty under the Act and the India-US treaty, following the assessee's own earlier years where the same issue had already been decided against it. No change in facts or circumstances was shown for the year under appeal, and the assessee had also filed an undertaking under section 158A(1) to await higher court decisions on the same question of law. The related grounds were dismissed, the appeal failed on the principal taxability issue, and the interest levy was treated as consequential.

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Issues: Whether consideration received for facilitating grant of user rights in software to Indian entities was taxable as royalty under the Act and the India-US tax treaty.

Analysis: The issue had already been decided against the assessee in its own case for earlier assessment years. There was no change in the facts or circumstances for the year under appeal. The assessee had also filed an undertaking under section 158A(1) to await the decision of the High Court and the Supreme Court on the same question of law, and the Assessing Officer accepted that the identical question was pending before the High Court.

Conclusion: The issue was decided against the assessee and the related grounds were dismissed.

Final Conclusion: The appeal failed on the principal issue of taxability of the software-related consideration, and the interest levy was treated as consequential.

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