High Court held that where assessee, a US based company, earned revenue from sale of software to its Indian clients, since grant of right to install and use software did not include providing copyright of said software to clients, revenue earned from said sale would not be taxable in hands of assessee as royalty in India..High Court also held that where assessee, a US based company, provided cloud computing infrastructure to its Indian clients through subscription agreement and even though cloud based services were based on patents/copyright but subscribers did not get any right of reproduction, thus, subscription fee was merely a consideration for online access of cloud computing services and would not be taxable as royalty in India. In view of judgment of this Court in case of Engineering Analysis Centre of Excellence (P.) Ltd. v. CIT [2021] 125 taxmann.com 42/281 Taxman 19/432 ITR 471 (SC)/[2022] 3 SCC 321 and CIT (International Taxation) v. MOL Corporation [SLP(C) Diary No. 5669 of 2024, dated 11-3-2024]
CIT v. MOL Corporation (2024) 299 Taxman 506(SC) Editorial: CIT (IT)) v. MOL Corporation (2024) 162 taxmann.com 197 (Delhi)(HC)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Fees for technical services-Sale of software-Subscription fees-Order of High Court is affirmed-SLP of Revenue is dismissed-DTAA-India-USA [S.9(1)(vii), art. 12, Art. 136]