https://www.taxtmi.com/caselaws?id=783739 Royalty from non-resident OEMs for manufacturing products outside India was not taxable under section 9(1)(vi)(c) or the India-USA tax treaty because the Revenue did not establish that the OEMs carried on business in India or used the licensed patents to earn income from an Indian source. Manufacturing and transfer of title occurred outside India, constituting business with India rather than business in India. BREW software receipts were also not royalty: the licences transferred copyrighted articles, not copyright rights, and the software was incidental to product use. The royalty additions were deleted, and related interest and penalty grounds did not survive. en-us Wed, 10 Dec 2025 00:00:00 +0530 Mon, 22 Dec 2025 07:49:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783739 Royalty from non-resident OEMs for manufacturing products outside India was not taxable under section 9(1)(vi)(c) or the India-USA tax treaty because the Revenue did not establish that the OEMs carried on business in India or used the licensed patents to earn income from an Indian source. Manufacturing and transfer of title occurred outside India, constituting business with India rather than business in India. BREW software receipts were also not royalty: the licences transferred copyrighted articles, not copyright rights, and the software was incidental to product use. The royalty additions were deleted, and related interest and penalty grounds did not survive. Case-Laws Income Tax Wed, 10 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783739