https://www.taxtmi.com/caselaws?id=331425 Royalty falls outside the treaty's concessional regime only where the Revenue proves, with substantive material, that the royalty-generating right, property or contract is effectively connected with a permanent establishment in India and that the branch actually played a real role in earning the income. On the facts, mere presence of technically qualified staff or assumptions from the collaboration agreement was insufficient, so the royalty remained taxable as royalty under the treaty. The proposed additional evidence was rejected because it would not cure the absence of core factual proof. The TDS credit issue was restored to the Assessing Officer for verification on production of proper certificates. en-us Fri, 29 Jul 2016 00:00:00 +0530 Tue, 06 Feb 2018 12:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331425 Royalty falls outside the treaty's concessional regime only where the Revenue proves, with substantive material, that the royalty-generating right, property or contract is effectively connected with a permanent establishment in India and that the branch actually played a real role in earning the income. On the facts, mere presence of technically qualified staff or assumptions from the collaboration agreement was insufficient, so the royalty remained taxable as royalty under the treaty. The proposed additional evidence was rejected because it would not cure the absence of core factual proof. The TDS credit issue was restored to the Assessing Officer for verification on production of proper certificates. Case-Laws Income Tax Fri, 29 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331425