Held that when once software was purchased for a particular usage under a non transferable and non grant of license, by no stretch of imagination could be said that any payment made for usage of software could be royalty. Accordingly remittance towards use of software did not amount to royalty and consequently assessee could not be treated as an assessee in default under section 201 for non deduction of tax. (AY. 2008-09 to 2010-11)
GE India Industrial (P.) Ltd. v. ADIT (IT) (2023) 198 ITD 522 (Hyd) (Trib.)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Purchase of software-Non transferable and non exclusive grant of license-Not royalty-Not liable to deduct tax at source-DTAA-India-USA.[S.195, 201, Art. 12]