https://www.taxtmi.com/caselaws?id=208888 Consideration for grant of distribution rights in cinematographic films was excluded from royalty under Explanation 2(v) to section 9(1)(vi) and the India-USA DTAA, so it could not be taxed as royalty. The Tribunal also held that, even if a business connection in India existed, non-resident business income could not be taxed as business profits in the absence of a permanent establishment, and the Indian licensee acted independently. The receipts were therefore not taxable in India either as royalty or as business income, with both issues decided in favour of the assessee. en-us Fri, 30 Dec 2011 00:00:00 +0530 Thu, 06 Aug 2026 17:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=208888 Consideration for grant of distribution rights in cinematographic films was excluded from royalty under Explanation 2(v) to section 9(1)(vi) and the India-USA DTAA, so it could not be taxed as royalty. The Tribunal also held that, even if a business connection in India existed, non-resident business income could not be taxed as business profits in the absence of a permanent establishment, and the Indian licensee acted independently. The receipts were therefore not taxable in India either as royalty or as business income, with both issues decided in favour of the assessee. Case-Laws Income Tax Fri, 30 Dec 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=208888