https://www.taxtmi.com/caselaws?id=339828 Consideration from sale of shrink-wrap software to Indian customers through distributors or resellers was analysed on the basis of whether it involved transfer of copyright rights or only sale of a copyrighted article. The ITAT Mumbai followed its own earlier coordinate-bench decisions and held that, absent transfer of copyright, the payment could not be treated as royalty under section 9(1)(vi) of the Income-tax Act or Article 12(3) of the India-USA DTAA. It also applied the settled principle that where two reasonable constructions of a taxing provision are possible, the interpretation favourable to the assessee should prevail, and the software-sale receipts were therefore not taxable as royalty in India. en-us Tue, 28 Feb 2017 00:00:00 +0530 Wed, 08 Mar 2017 06:58:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339828 Consideration from sale of shrink-wrap software to Indian customers through distributors or resellers was analysed on the basis of whether it involved transfer of copyright rights or only sale of a copyrighted article. The ITAT Mumbai followed its own earlier coordinate-bench decisions and held that, absent transfer of copyright, the payment could not be treated as royalty under section 9(1)(vi) of the Income-tax Act or Article 12(3) of the India-USA DTAA. It also applied the settled principle that where two reasonable constructions of a taxing provision are possible, the interpretation favourable to the assessee should prevail, and the software-sale receipts were therefore not taxable as royalty in India. Case-Laws Income Tax Tue, 28 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339828