https://www.taxtmi.com/caselaws?id=379953 The Tribunal ruled in favor of the appellant, overturning the disallowance of expenditure for not deducting tax at source on software purchases. It clarified that software purchases without acquiring copyright do not constitute royalty under the Income-tax Act or Double Taxation Avoidance Agreement (DTAA). The Tribunal emphasized the DTAA definition of 'royalty,' excluding payments for copyrighted articles from tax deduction obligations. The appellant's claim of expenditure was allowed, and the default tax deduction status was negated. The decision underscored the primacy of DTAA provisions and the inapplicability of tax deduction requirements in this context. en-us Fri, 03 May 2019 00:00:00 +0530 Fri, 10 May 2019 07:59:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=379953 The Tribunal ruled in favor of the appellant, overturning the disallowance of expenditure for not deducting tax at source on software purchases. It clarified that software purchases without acquiring copyright do not constitute royalty under the Income-tax Act or Double Taxation Avoidance Agreement (DTAA). The Tribunal emphasized the DTAA definition of 'royalty,' excluding payments for copyrighted articles from tax deduction obligations. The appellant's claim of expenditure was allowed, and the default tax deduction status was negated. The decision underscored the primacy of DTAA provisions and the inapplicability of tax deduction requirements in this context. Case-Laws Income Tax Fri, 03 May 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=379953