Assessee, a tax resident of UK, was engaged in business of providing human resource background screening services including pre-employment background screening, employment, education, verification services and investigative due diligence services etc.    Assessing Officer held that reports provided by assessee was protected by copyright laws and, therefore, use of such reports by clients would result in use of copyright chargeable to tax as royalty and consideration received by assessee was for allowing use of database to its clients and was chargeable to tax as royalty and services provided by assessee were ancillary to alleged ‘royalties’ and, therefore, also taxable as FTS.  On appeal the Tribunal held that  assessee is  only providing a report summarising its findings with respect to background check undertaken by assessee which was primarily a factual data and could not per se qualify as literary or artistic or any other copyrightable work as such a report could not be copyrighted as it did not fulfil requirements enlisted under section 13(1)(a) of Indian Copyright Act, 1957.  Therefore, consideration received by assessee under terms of its agreement with its client was purely towards provision of background screening services could not be regarded as royalties under provisions of article 13. (AY. 2019-20, 2020-21)