Dismissing the appeal of the Revenue the Court held that the amount paid by resident Indian end-user/distributors to non-resident computer software manufacturers/suppliers, as consideration for resale/use of computer software through EULAs/distribution agreement, is not payment of royalty for use of copyright in computer software, and thus, same does not give rise to any income taxable in India. Followed, Engineering Analysis Centre of Excellence (P.) Ltd. v. CIT(2021) 432 ITR 471(SC) (AY. 2014-15)
CIT (IT) NET APP B V (2023) 155 taxmann.com 274 /(2024) 460 ITR 152 (Delhi)(HC) Editorial: CIT (IT) v. NET APP B V (2023) 295 Taxman 216/ 460 ITR 154 (SC)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Fess for technical services-Computer software-Non-resident computer software manufacturers/suppliers-, Consideration for resale/use of computer software through EULAs/distribution agreement-Not payment of royalty for use of copyright in computer software-Not taxable in India-DTAA-India-Netherland-Appeal of Revenue is dismissed. [S. 9(1)(vii), 260A, Art. 12]