Dismissing the appeal of the Revenue the High Court held that payments were made by Indian-company to non-resident company which was computer software manufacturer/supplier for resale/use of computer software through distribution agreements, said payment did not amount to royalty for use of copyright in computer software, and same did not give rise to any income taxable in India. SLP of Revenue is dismissed. (AY. 2005-06, 2007-08)
CIT (IT) v. Gracemac Corporation Golf View Corporate (2024) 301 Taxman 172 / 468 ITR 1 (SC) Editorial : CIT (IT) v. Gracemac Corporation Golf View Corporate (2022] 287 Taxman 197 / (2023) 456 ITR 124 (Delhi)(HC)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Computer software — Payments for licensing of software products-Resale of computer software-Not taxable as royalty-DTAA-India-USA-SLP of Revenue is dismissed. [Art. 12, Art. 136]
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