Allowing the appeal the Court held that the Tribunal was not correct in holding that the assessee was to be treated as an assessee-in-default under section 201(1) of the Act holding that payments made by the assessee were in the nature of “royalty payments” as defined under Explanation 2 to section 9(1)(vi) of the Act and under the applicable Double Taxation Avoidance Agreements.(AY. 2007-08 to 2012-13)
Wipro Ltd. v. Add. CIT (2023)453 ITR 796 (Karn)(HC) Editorial: Add. CIT v. Wipro Ltd (2023) 453 ITR 799 (SC)
S. 9(1)(vi) : Income deemed to accrue or arise in India – Royalty –
Non-Resident – Import of licensed software directly supplied by foreign vendor to end-user in India under exclusive licences -Not liable to deduct tax at source. [S. 195, 201(1)]