Dismissing the appeal of the Revenue the Court held that income of a Switzerland-based company from supply of CAS and middleware products to Indian customers did not fall under ‘royalty’ as defined under section 9(1)(vi) and article 12(3) of India-Swiss DTAA and thus, same did not give rise to any income taxable in India. Not liable to deduct tax at source. Order of Tribunal is affirmed. (AY. 2017-18)
CIT (IT) v. Nagravision S. A. (2023) 157 taxmann.com 457/ (2024) 461 ITR 143 (Delhi)(HC) Editorial : SLP of Revenue is dismissed, CIT (IT) v. Nagravision S. A (2024) 297 Taxman 65/ 461 ITR 146 (SC)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Income of supply of CAS and middleware products by the Switzerland company to Indian customers-Does not fall within the ambit of ‘royalty’ as defined in section 9(1)(vi) as well as DTAA-Not liable to deduct tax at source-DTAA-India-Switzerland [S.195, 260A, Art. 12(3) [