The Assessee is a Singapore-based entity which received income from the sale of software to Indian entities. The AO treated these receipts as taxable u/s 9(1)(vi) of the Act and Article 12(3) of the India-Singapore DTAA. The Assessee challenged the AO’s order and submitted that the agreements merely granted the right to use software without transferring copyright ownership. It emphasized that the software was licensed to Indian entities for specific business purposes, and modifications were limited to operational needs. The ITAT scrutinized the clauses of the agreements between the Assessee and Indian entities and noted the discrepancies in the AO’s interpretation of the DTA, emphasizing that the contractual terms aligned with the judgment in Engineering Analysis Centre of Excellence Pvt. Ltd. v. CIT CA Nos. 8735-8736 of 2018. After considering the arguments and contractual clauses, the ITAT held that the receipts from software sales to Indian entities were not taxable under the India-Singapore DTAA. (AY.  2020-21)