Dismissing the appeals of the Revenue the Court held that the Tribunal was right in holding that payments for licensing of software products of the assessee in the territory of India by it were not taxable in India as royalty under section 9(1)(vi) read with article 12 of the Double Taxation Avoidance Agreement. (AY. 1997-98, 1999-2000)
CIT(IT) v. Microsoft Corporation (2022) 445 ITR 6/ 288 Taxman 32 (Delhi)(HC) , Editorial , SLP of Revenue dismissed , CIT (IT) v. Microsoft Corporation (Ms Corp) (2023)453 ITR 746/293 Taxman 508 (SC)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Transferee authorised to use licensed software-No transfer of Copyright-Amount received is not royalty-DTAA-India-USA. [S. 90(2) Art. 12]