https://www.taxtmi.com/caselaws?id=258697 The tribunal upheld the CIT(A)'s decision that the purchase of technical knowhow cannot be taxed as royalty under Section 195 of the Income Tax Act. Citing legal precedents and agreements between the parties, the tribunal emphasized that for a payment to be considered royalty, the owner must retain rights in the property, which was not the case here. The tribunal also noted that if the sum payable is not assessable to tax in India, the provisions of Section 195 do not apply. The Revenue's appeal was dismissed due to the lack of contradictory evidence challenging these interpretations. en-us Fri, 23 Jan 2015 00:00:00 +0530 Fri, 17 Apr 2015 12:36:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258697 The tribunal upheld the CIT(A)'s decision that the purchase of technical knowhow cannot be taxed as royalty under Section 195 of the Income Tax Act. Citing legal precedents and agreements between the parties, the tribunal emphasized that for a payment to be considered royalty, the owner must retain rights in the property, which was not the case here. The tribunal also noted that if the sum payable is not assessable to tax in India, the provisions of Section 195 do not apply. The Revenue's appeal was dismissed due to the lack of contradictory evidence challenging these interpretations. Case-Laws Income Tax Fri, 23 Jan 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258697