TaxTMI 
TaxTMI 
2021 (12) TMI 647
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act, 1961 [hereinafter referred to as 'The Act']. 2. The assessee has raised the following grounds of appeal: "1. That on the facts and in the circumstances of the case and in law, the Learned Assistant Commissioner of Income-tax (International Taxation) 1(2X2), New Delhi ('the Learned AO') and the Dispute Resolution Pane! ('the DRP') erred in holding the sum of INR 1,31,02,703 as 'Royalty' under Section 9(i)(vi) of the Income-tax Act, 1961 ('the Act') and Article 12 of the Double Taxation Avoidance Agreement ('the DTAA1) entered into between India and USA. 2. That on the facts and in the circumstances of the case and in law, the Learned AO and the DRP erred in considering a rate of 20% instead of 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....products in the Indian market. Accordingly, the appellant company receives purchase price from DJCIPL at an arm's length price. 6. During the course of scrutiny assessment proceedings, the Assessing Officer was of the firm belief that the receipts from DJCIPL should be taxed in India as 'Royalty Income" under the provisions of the Act as well as India-USA DTAA. 7. Referring to the definition 'Royalty' given in Section 9(1)(vi) of the Act, the Assessing Officer treated the Indian receipts as taxable as 'Royalty'. The Assessing Officer further examined the relevant Article of India-USA DTAA and again formed a belief that Indian receipts are also taxable under the India-USA DTAA and concluded the proceedings by taxing the same. 8. Bef....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rial, commercial or scientific experience; and (b) payments of any kind received as consideration for the use of, or the right to use, any industrial, commercial or scientific equipment, other than income, derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic. 10.1.5 Thus, Article 12 of the Tax Treaty brings within the ambit of the definition of royalty, a payment made for the use of or the right to use a copyright of a literary, artistic or scientific work. Thus, only those payments that allow a payer to use / acquire a right to use a copyright in a literary, artistic or scientific work arc covered within the definition of royalty. Payments made for acquiring the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... transaction under consideration is tor the provision of accessing the database of the Applicant/financial products license, the same cannot he considered as 'royally' under Article 12 of the India-US DTAA. 10.1.9 Furthermore, in determining whether or not a payment is for the use of copyright, it is important to distinguish between a payment for the right to use the copyright in a programme and the right to use the programme itself. We have outlined below our detailed submission on the distinction between copyright and the copyrighted article:" 12. A perusal of the above Article shows that it brings within the ambit of the definition of 'Royalty' the payment made for use of, or the right to use any copyright of a literary, ....