https://www.taxtmi.com/caselaws?id=441896 Receipts from the sub-licensing of standard software licences on a cost-to-cost basis were held to be business income, not residuary income under section 56(1) or Article 23(3) of the India-USA DTAA. The tribunal applied the principle that the residuary head and the treaty's other-income article operate only where income cannot be classified under a specific head, and that income capable of being characterised as royalty or business income cannot be shifted to other income merely because the charging article does not apply. As the activity was regular, continuous and used in the affiliates' operations, the receipts fell under Article 7 and, in the absence of a permanent establishment in India, were not taxable. The addition was deleted. en-us Mon, 14 Aug 2023 00:00:00 +0530 Sat, 19 Aug 2023 10:14:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=441896 Receipts from the sub-licensing of standard software licences on a cost-to-cost basis were held to be business income, not residuary income under section 56(1) or Article 23(3) of the India-USA DTAA. The tribunal applied the principle that the residuary head and the treaty's other-income article operate only where income cannot be classified under a specific head, and that income capable of being characterised as royalty or business income cannot be shifted to other income merely because the charging article does not apply. As the activity was regular, continuous and used in the affiliates' operations, the receipts fell under Article 7 and, in the absence of a permanent establishment in India, were not taxable. The addition was deleted. Case-Laws Income Tax Mon, 14 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=441896