Held that the consideration received for sale of software products is not assessable as royalty. The Tribunal held that since the assessee had a global net loss according to audited books of accounts, the assessee was not liable to be taxed in India according to article 7(1) of the Double Taxation Avoidance Agreement between India and Finland. (AY. 2008-09, 2009-10, 2010-11, 2013-14, 2014-15, 2015-16)
Nokia Solutions And Networks OY v. Add. CIT (IT) (2022) 97 ITR 79 (Delhi)(Trib.)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Consideration received for sale of software products-Not assessable as royalty-No permanent establishment in India-Net loss-Academic issue-DTAA-India-Finland. [S. 9(1)(vi), Expln.4. Art. 7(1)]