Held, that the terms of the agreement made it clear that the assessee was purely a distributor or reseller of a shrink-wrapped or off the shelf software having no right to make any value addition. Any unauthorised use of the software licence or product would expose the assessee to legal consequences. Thus, the assessee had purchased a copyrighted article for distribution. The assessee had not purchased any copyright either for its internal use, consumption or resale. The computer software purchased by the assessee was not a customised product for a particular customer in India but a standardised product which could be sold to any person who was willing to buy it, a product which could be bought and sold in the open market. The payment was not in the nature of royalty, there was no requirement for deduction of tax at source under section 195 of the Act and the disallowance made by the Assessing Officer and sustained by the Commissioner (Appeals) was not sustainable. (AY.  2009-10)