Assessee had purchased copyrighted software from a service provider from USA and made payment without deducting tax at source under section 195.  Assessing Officer disallowed sum paid by assessee under section 40(a)(i) by holding that amount paid by assessee for acquiring license in software was in nature of royalty as defined under section 9(1)(vi) and was liable for withholding of tax. On appeal the Tribunal held that since software purchased by assessee was a copyrighted article, payment made by assessee for purchase of such software was outside scope of definition of royalty as defined under section 9(1)(vi) and thus, assessee was not required to withhold taxes under section 195 and consequently, payment made for purchase of software could not be disallowed under section 40(a)(i) for non-deduction of taxes at source.  (AY. 2014-15)