AO held that web hosting charges for use of severs, was nothing but charges paid for use of commercial equipments within meaning of section 9(1)(vi), read with Explanation 2 and Explanation 5 of the said clause, thereby, assuming character of royalty hence liable to deduct tax at source . On appeal the Tribunal held that since assessee did not possess and did not have any control over server or severs space being deployed by Amazon, while providing e-services as per agreement, then there was no scope to construe that e-service charges paid to Amazon could be described as royalty. Accordingly the assessee is not liable to deduct tax at source hence no disallowances can be made. Amendment, if any, to scope of royalty by an amendment in 2012 by Finance Act with retrospective effect cannot fasten assessee with liability to withhold tax for the years which have already been closed prior to insertion of amendment. (AY. 2011-12)