CIT (LTU) v. Reliance Industries Ltd. (2024) 299 Taxman 488(Bom)(HC)

S. 195 : Deduction at source-Non-resident-Other sums-Computer software manufacturers/suppliers, as consideration for resale/use of computer software through EULAs/distribution agreements-Not royalty-Not taxable in India-OEECD Model Convention-art 12 [S. 9(1)(vi), 9(1(vii), 195(2),201(IA), 260A]

Held that the amounts paid by resident Indian end-users/distributors to non-resident computer software manufacturers/suppliers, as consideration for resale/use of computer software through EULAs/distribution agreements, is not payment of royalty for use of copyright in computer software, and same does not give rise to any income taxable in India. Not liable to deduct tax at source.