https://www.taxtmi.com/caselaws?id=412117 Receipts from sale of software licences, together with support, maintenance and training services, were treated as consideration for use of licensed software rather than for transfer of copyright, so they were not taxable as royalty. The distinction between a copyrighted article and copyright itself was applied, and the later expansion in Explanation 4 to section 9(1)(vi) of the Income-tax Act was regarded as prospective only. In the absence of a permanent establishment in India, the receipts were not taxable as business profits either. Reassessment based solely on the earlier royalty view was unsustainable because its recorded reason no longer had legal force, so the reopening was invalid and the assessment was annulled. en-us Wed, 08 Sep 2021 00:00:00 +0530 Thu, 09 Sep 2021 10:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=412117 Receipts from sale of software licences, together with support, maintenance and training services, were treated as consideration for use of licensed software rather than for transfer of copyright, so they were not taxable as royalty. The distinction between a copyrighted article and copyright itself was applied, and the later expansion in Explanation 4 to section 9(1)(vi) of the Income-tax Act was regarded as prospective only. In the absence of a permanent establishment in India, the receipts were not taxable as business profits either. Reassessment based solely on the earlier royalty view was unsustainable because its recorded reason no longer had legal force, so the reopening was invalid and the assessment was annulled. Case-Laws Income Tax Wed, 08 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=412117