Dismissing the appeal of the Revenue the Court held that the Tribunal is justified in holding that licensing of software products is not taxable in India as royalty in view of Article 12 of the DTAA between India and USA. No substantial question of law. (AY. 2006-07)
CIT (IT) v. Gracemac Corporation (No.2) (2023) 456 ITR 130 / 153 taxmann.com 680 (Delhi)(HC) Editorial : SLP of Revenue dismissed, CIT (IT) v. Gracemac Corporation (2023) 294 Taxman 708(SC)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Consideration for resale / use of computer software-Licensing of software products in India not taxable in India as royalty-Not payment of royalty for use of copy right in computer software-Not taxable in India-DTAA-India-USA.[S.9(1)(vii), Art. 12]