High Court following its order in the assessee’s own case in CIT (IT) v. ZTE Corporation [2017] 392 ITR 80 (Delhi)(HC) held that payment for software did not constitute royalty, on a petition for special leave to appeal to the Supreme Court :The Supreme Court dismissed the petition holding the issue is covered against the Department by its ruling in Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT [2021] 432 ITR 471 (SC) but granted liberty to the Department to get the special leave petition revived if the review petition in Engineering Analysis Centre of Excellence Pvt. ltd. (AY. 2013-14, 2015-16)
CIT (IT) v. ZTE Corporation (2023)454 ITR 541/ 293 Taxman 274 (SC) Editorial : CIT (IT) v. ZTE Corporation (2021) 130 taxmann.com 128 (Delhi)(HC)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Non-Resident-Payment for software not royalty-Explns. 5, 6-DTAA-India-China. [Art. 12(3)].