Assessee, a foreign company, was engaged in business of development and sale of Project Management Software (‘PMS’) Licenses to various customers all over world. The Assessing Officer held that the amount received is taxable as royalty. DRP upheld the order. On appeal the Tribunal held  that payment received by assessee from its customer from sale of software products/licenses did not fall in nature of ‘royalty’ as per article 12(3) or section 9(1)(vi) and therefore, same was not taxable in India. (AY. 2014-15)