Receipts from CRS and Altea Systems Are Business Income, Not Royalty Under Section 9(1)(vi)

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....The ITAT held that receipts from the CRS and Altea systems developed by the assessee, a Spanish tax resident, do not constitute 'royalty' under Section 9(1)(vi) of the Income Tax Act or the India-Spain DTAA, but are taxable as business income. The existence of a Permanent Establishment (PE) in India was affirmed, consistent with prior rulings, with 15% of revenue attributable to the PE taxable in India; however, no additional income was attributed due to payments to distributors. The levy of interest under Section 234B was set aside, as the assessee was not liable for advance tax given TDS on its Indian-sourced income. The appeal was partly allowed and partly dismissed accordingly.....