https://www.taxtmi.com/caselaws?id=418270 Consideration for software embedded in telecommunication equipment was treated as part of the hardware supply, because the software had no independent existence and no copyright rights were transferred to the customer. On that basis, the payment was not characterised as royalty under section 9(1)(vi) of the Income-tax Act, 1961 or Article 13 of the India-France tax treaty. The analysis followed earlier decisions and the Supreme Court's principle that use or resale of computer software, without transfer of copyright, does not create royalty income. The Revenue's additions were therefore unsustainable. en-us Wed, 09 Feb 2022 00:00:00 +0530 Fri, 11 Feb 2022 09:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=418270 Consideration for software embedded in telecommunication equipment was treated as part of the hardware supply, because the software had no independent existence and no copyright rights were transferred to the customer. On that basis, the payment was not characterised as royalty under section 9(1)(vi) of the Income-tax Act, 1961 or Article 13 of the India-France tax treaty. The analysis followed earlier decisions and the Supreme Court's principle that use or resale of computer software, without transfer of copyright, does not create royalty income. The Revenue's additions were therefore unsustainable. Case-Laws Income Tax Wed, 09 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=418270