Assessee, a non-resident US company, was engaged in developing technology for enterprise IT operations and development operations and provided operational intelligence solutions. The  assessee sold software to two Indian entities for their internal use. Assessing Officer  treated amount received from sale of software as royalty. On appeal the Tribunal held that  the assessee had sold copyrighted articles and had not transferred use or right to use of any copyright in software. Therefore the amount received by assessee from sale of software could not be treated as royalty under article 12(3) of DTAA between India and USA and accordingly, addition is  deleted. (AY. 2016-17)