Dismissing the appeal of the Revenue the Court held that consideration received by assessee, a company incorporated and based in Israel, for sale of software to Indian company was not royalty since there was no transfer or use of copyright in sale of ‘off shelf’ software that could come within ambit of royalty and, hence, it was not taxable in India.(AY. 2011-12)
CIT(IT) v. Cognyte Technologies Israel Ltd (2024) 297 Taxman 120 (Delhi)(HC)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Fees for technical services-Consideration received by a company incorporated in Israel, for sale of software-Not royalty-No transfer of copyright in sale of off shelf software-Not taxable in India-DTAA-India-Israel. [S.9(1)(vii) art. 12]