Allowing the appeal of the assessee the Court held that payment made for licence to use the software is not royalty, as the copyright in the software was not transferred but merely allowed to be used and it being a part of operative standard. Followed Danisco India (P) Ltd v UOI (2018) 404 ITR 539 (Delhi) (HC)
GE India Industrial (P) Ltd. v. PCIT ( 2019) 267 Taxman 398/ 111 taxmann.com 165 (Delhi)(HC) Editorial: SLP is granted to the revenue, PCIT v.GE India Industrial (P) Ltd ( 2019) 267 Taxman 166 (SC)
S. 9(1)(vi) : Income deemed to accrue or arise in India–Royalty– Payment made for use of software-Not royalty-DTAA-India-USA-United Kingdom. [S. 195, Art. 12]