https://www.taxtmi.com/caselaws?id=753808 Non-exclusive, non-transferable and revocable software licences procured centrally from Microsoft and cross-charged to group entities did not create royalty income where no proprietary interest, sub-licence right, or right to reproduce, modify or reverse engineer the software was transferred. The receipt was a mere reimbursement of licence cost, and there was no evidence of any IT infrastructure or equipment being provided so as to constitute equipment royalty. Applying the principle that royalty arises only on transfer or use of copyright rights contemplated by the copyright statute, the ITAT Delhi held that mere access to standard software is not parting with copyright. The addition was unsustainable and the amount was not taxable as royalty. en-us Tue, 16 Apr 2024 00:00:00 +0530 Mon, 10 Jun 2024 19:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753808 Non-exclusive, non-transferable and revocable software licences procured centrally from Microsoft and cross-charged to group entities did not create royalty income where no proprietary interest, sub-licence right, or right to reproduce, modify or reverse engineer the software was transferred. The receipt was a mere reimbursement of licence cost, and there was no evidence of any IT infrastructure or equipment being provided so as to constitute equipment royalty. Applying the principle that royalty arises only on transfer or use of copyright rights contemplated by the copyright statute, the ITAT Delhi held that mere access to standard software is not parting with copyright. The addition was unsustainable and the amount was not taxable as royalty. Case-Laws Income Tax Tue, 16 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753808