The Tribunal relying on the decision of co-ordinate bench ruling in assessee own case for AY 2000-01 to 2004-05, held that the use of ‘intellectual property’ for manufacture of equipment outside India could not be said that original equipment manufacturers used assessee’s patents for carrying on business in India. Further such sale of equipment in India would amount to business ‘with’ India and not business ‘in’ India. Thus it was held that the royalty income earned by the assessee outside India will not be taxable in India u/s 9(1)(vi)(c) of the Act. ( AY. 2012-13)
Qualcomm Incorporated v. DDIT (2018) 65 ITR 248/ 52 CCH 0338 (Delhi) (Trib.)
S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty – Royalty income of assessee earned from OEMs situated outside India for the patents licensed to OEMs for manufacture of CDMA Network outside India was not chargeable to tax u/s 9(1)(vi)(c) .