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“Section 9(1)(vi)”

Section References (mined)Section 9Section 9(1)(vi)770 judgments

The decision most relied on for Section 9(1)(vi) is Engineering Analysis Centre of Excellence (P) Ltd. v. CIT (432 ITR 471), cited in 914 judgments on BharatTax.

Leading authorities on Section 9(1)(vi)

Engineering Analysis Centre of Excellence (P) Ltd. v. CIT
432 ITR 471 · 2021 · Supreme Court
914
citing judgments

Payments for the supply or use of computer software, where there is no transfer of copyright but only a right to use the copyrighted product, are generally considered business profits and not 'royalty' or 'fees for technical services' under the Income Tax Act, 1961 or relevant DTAAs. This principle also applies to transponder fees, which are not taxable as royalty.

CIT v. Samsung Electronics Ltd.
345 ITR 494 · 2012 · High Court
461
citing judgments

Payments by Indian residents to non-resident foreign software suppliers for software are considered royalty, constituting income deemed to accrue in India under section 9(1)(v), thereby requiring tax deduction at source under section 195.

Asia Satellite Telecommunications Co. Ltd. v. DIT
332 ITR 340 · 2011 · High Court
359
citing judgments

Payments for the use of equipment, such as satellite transponders, do not constitute 'royalty' under Section 9(1)(vi) of the Income-tax Act, 1961, or under applicable tax treaties, especially when there is no transfer of the right to use a process or underlying technology.

DIT v. New Skies Satellite BV
382 ITR 114 · 2016 · High Court
325
citing judgments

An amendment to the Income Tax Act, such as the Finance Act, 2012 amendment to Section 9(1)(vi) defining royalty, does not automatically override or alter the definition of 'royalty' as provided in a Double Taxation Avoidance Agreement (DTAA) unless the DTAA itself is bilaterally amended. The definition of royalty in a DTAA remains unaffected by unilateral changes to domestic law.

DIT v. Nokia Networks OY
358 ITR 259 · 2013 · High Court
276
citing judgments

Payments for the supply of software along with telecom equipment are not in the nature of royalty if they are for the use of a copyrighted article, not the copyright itself. Such payments are not taxable in India in the absence of a Permanent Establishment (PE).

DIT v. Infrasoft Ltd.
39 Taxmann.com 88 · 2013 · High Court
269
citing judgments

Payments for the use of copyrighted software, without the transfer of any rights in the underlying copyright itself, do not constitute 'royalty' under the Income-tax Act or tax treaties. Such payments are often treated as business income, taxable only if a permanent establishment exists.

CIT v. Siemens Aktiongesellschaft
310 ITR 320 · 2009 · High Court
259
citing judgments

Reimbursements of actual expenses without any profit element are not taxable income. Additionally, mere amendments to the Income-tax Act do not override the provisions of Double Taxation Avoidance Agreements (DTAAs).

DIT v. Ericsson A.B
343 ITR 470 · 2012 · High Court
256
citing judgments

Payments for the use of copyrighted software or reimbursement of data processing costs do not constitute 'royalty' under Section 9(1)(vi) of the Income-tax Act or Article 12(3) of a DTAA where there is no transfer of copyright or rendering of services that "make available" technical knowledge. This position was later upheld by the Supreme Court.

Judgments citing Section 9(1)(vi)

Shell International B.V., Ahmedabad vs. The ACIT, Intl. Taxn.-1, Ahmedabad

ITA 110/AHD/2022[2018-19]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2018-19

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

India Markets Private Limited (‘SIMPL’), and Shell Technology India Private Limited (merged with SIMPL) (‘STIPL’) for HR Shell People Support as royalty under Section 9(1)(vi) of the Act and Article 12 of India – Netherlands tax treaty (“Tax Treaty”). 3. The learned AO based on the directions ... such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (Section 9(1)(vi), along with Shell India Markets Private Limited 12 explanations 2 and 4 thereof, which deal with royalty, not being more beneficial

Shell International B.V., Mumbai vs. The ACIT, Int.Taxa.-2, Ahmedabad

ITA 563/AHD/2020[2017-18]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2017-18

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

India Markets Private Limited (‘SIMPL’), and Shell Technology India Private Limited (merged with SIMPL) (‘STIPL’) for HR Shell People Support as royalty under Section 9(1)(vi) of the Act and Article 12 of India – Netherlands tax treaty (“Tax Treaty”). 3. The learned AO based on the directions ... such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (Section 9(1)(vi), along with Shell India Markets Private Limited 12 explanations 2 and 4 thereof, which deal with royalty, not being more beneficial

Shell International B.V., Mumbai vs. The ACIT, Intl. Taxn.-2, Ahmedabad

ITA 1658/AHD/2019[2016-17]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2016-17

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

India Markets Private Limited (‘SIMPL’), and Shell Technology India Private Limited (merged with SIMPL) (‘STIPL’) for HR Shell People Support as royalty under Section 9(1)(vi) of the Act and Article 12 of India – Netherlands tax treaty (“Tax Treaty”). 3. The learned AO based on the directions ... such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (Section 9(1)(vi), along with Shell India Markets Private Limited 12 explanations 2 and 4 thereof, which deal with royalty, not being more beneficial

M/S. Shell International B.V., Mumbai vs. The ACIT, Intl. Taxn.-2, Ahmedabad

ITA 1657/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2015-16

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

India Markets Private Limited (‘SIMPL’), and Shell Technology India Private Limited (merged with SIMPL) (‘STIPL’) for HR Shell People Support as royalty under Section 9(1)(vi) of the Act and Article 12 of India – Netherlands tax treaty (“Tax Treaty”). 3. The learned AO based on the directions ... such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (Section 9(1)(vi), along with Shell India Markets Private Limited 12 explanations 2 and 4 thereof, which deal with royalty, not being more beneficial

Shell International B.V., Mumbai vs. The ACIT, Intl. Taxn.-1, Ahmedabad

ITA 2389/AHD/2018[2011-12]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2011-12

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

India Markets Private Limited (‘SIMPL’), and Shell Technology India Private Limited (merged with SIMPL) (‘STIPL’) for HR Shell People Support as royalty under Section 9(1)(vi) of the Act and Article 12 of India – Netherlands tax treaty (“Tax Treaty”). 3. The learned AO based on the directions ... such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (Section 9(1)(vi), along with Shell India Markets Private Limited 12 explanations 2 and 4 thereof, which deal with royalty, not being more beneficial

Shell International B.V., Mumbai vs. The ACIT, Intl. Taxn.-1, Ahmedabad

ITA 2388/AHD/2018[2010-11]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2010-11

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

India Markets Private Limited (‘SIMPL’), and Shell Technology India Private Limited (merged with SIMPL) (‘STIPL’) for HR Shell People Support as royalty under Section 9(1)(vi) of the Act and Article 12 of India – Netherlands tax treaty (“Tax Treaty”). 3. The learned AO based on the directions ... such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (Section 9(1)(vi), along with Shell India Markets Private Limited 12 explanations 2 and 4 thereof, which deal with royalty, not being more beneficial

M/S. Shell International B.V., Mumbai vs. The Dy. CIT, Intl. Taxn.-1, Ahmedabad

ITA 2789/AHD/2017[2014-15]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2014-15

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

India Markets Private Limited (‘SIMPL’), and Shell Technology India Private Limited (merged with SIMPL) (‘STIPL’) for HR Shell People Support as royalty under Section 9(1)(vi) of the Act and Article 12 of India – Netherlands tax treaty (“Tax Treaty”). 3. The learned AO based on the directions ... such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (Section 9(1)(vi), along with Shell India Markets Private Limited 12 explanations 2 and 4 thereof, which deal with royalty, not being more beneficial

M/S. Shell International B.V., Mumbai vs. The Dy. CIT, Intl. Taxn.-1, Ahmedabad

ITA 2788/AHD/2017[2009-10]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2009-10

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

India Markets Private Limited (‘SIMPL’), and Shell Technology India Private Limited (merged with SIMPL) (‘STIPL’) for HR Shell People Support as royalty under Section 9(1)(vi) of the Act and Article 12 of India – Netherlands tax treaty (“Tax Treaty”). 3. The learned AO based on the directions ... such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (Section 9(1)(vi), along with Shell India Markets Private Limited 12 explanations 2 and 4 thereof, which deal with royalty, not being more beneficial

M/S. Shell International B.V., Mumbai vs. The Dy. CIT, Intl. Taxn.-1, Ahmedabad

ITA 176/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2013-14

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

India Markets Private Limited (‘SIMPL’), and Shell Technology India Private Limited (merged with SIMPL) (‘STIPL’) for HR Shell People Support as royalty under Section 9(1)(vi) of the Act and Article 12 of India – Netherlands tax treaty (“Tax Treaty”). 3. The learned AO based on the directions ... such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (Section 9(1)(vi), along with Shell India Markets Private Limited 12 explanations 2 and 4 thereof, which deal with royalty, not being more beneficial

M/S. Shell International B.V., Mumbai vs. The Dy. CIT, Intl. Taxn.-1, Ahmedabad

ITA 175/AHD/2017[2012-13]Status: DisposedITAT Ahmedabad20 Mar 2024AY 2012-13

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

India Markets Private Limited (‘SIMPL’), and Shell Technology India Private Limited (merged with SIMPL) (‘STIPL’) for HR Shell People Support as royalty under Section 9(1)(vi) of the Act and Article 12 of India – Netherlands tax treaty (“Tax Treaty”). 3. The learned AO based on the directions ... such distributors/end-users, which would amount to the use of or right to use any copyright. The provisions contained in the Income Tax Act (Section 9(1)(vi), along with Shell India Markets Private Limited 12 explanations 2 and 4 thereof, which deal with royalty, not being more beneficial

M/S Indix Corporaion, United States vs. ITO, International Taxation, Ward-2(1), Chennai

In the result, appeal filed by the assessee is allowed

ITA 922/CHNY/2023[2018-19]Status: DisposedITAT Chennai13 Mar 2024AY 2018-19

Bench: Shri Mahavir Singh, Hon’Ble & Shri Manjunatha.G, Hon’Bleआयकर अपील सं./Ita No.922/Chny/2023 िनधा"रण वष"/Assessment Year: 2018-19 V. M/S.Indix Corporation, The Income Tax Officer C/O S. Venkatram & Co Llp., (International Taxation), 218, T.T.K. Road, Alwarpet, Ward-2(1), Chennai – 600 018. Chennai. [Pan: Aaeci 8965 M] (अपीलाथ"/Appellant) (""यथ"/Respondent) : अपीलाथ" क" ओर से/ Appellant By Ms.Pavitra Mani, Advocate : ""यथ" क" ओर से /Respondent By Shri Arv Sreenivasan, Addl.Cit : सुनवाई क" तारीख/Date Of Hearing 21.02.2024 : घोषणा क" तारीख /Date Of Pronouncement 13.03.2024

Section 115A(1)(b)Section 143(1)Section 206ASection 6Section 9Section 9(1)(vi)

आयकर अपीलीय अिधकरण, ‘ए’ "यायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI "ी महावीर िसंह, माननीय उपा

International Education & Research Foundation, Ahmedabad vs. The DCIT, Int-Taxa-1, Ahmedabad

In the result, the issue is restored to the file of Assessing Officer with the aforesaid and directions

ITA 183/AHD/2020[2018-19]Status: DisposedITAT Ahmedabad08 Mar 2024AY 2018-19

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Respondent by: Shri Ramesh Kumar, Sr. D.RFor Respondent: Shri Ramesh Kumar, Sr. D.R
Section 195Section 201Section 9(1)(vi)

provision of Income Tax Act and the respective DTAA, Copy right Act 1957 and Trade Mark Act 1999, under Section 9(1)(vi) r.w.s. 195 of the act. The added TDS of Rs. 1,56,598 on the payment of Rs 15,65,984 should be deleted. 2. The Learned ... provision of Income Tax Act and the respective DTAA, Copy right Act 1957 and Trade Mark Act 1999, under Section 9(1)(vi) r.w.s. 195 of the act. The added TDS of Rs. 2,30,091 on the payment of Rs 23,00,915 should be deleted. 2. The Learned

International Education & Research Foundation, Ahmedabad vs. The DCIT, Int-Taxa-1, Ahmedabad

In the result, the issue is restored to the file of Assessing Officer with the aforesaid and directions

ITA 182/AHD/2020[2017-18]Status: DisposedITAT Ahmedabad08 Mar 2024AY 2017-18

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Respondent by: Shri Ramesh Kumar, Sr. D.RFor Respondent: Shri Ramesh Kumar, Sr. D.R
Section 195Section 201Section 9(1)(vi)

provision of Income Tax Act and the respective DTAA, Copy right Act 1957 and Trade Mark Act 1999, under Section 9(1)(vi) r.w.s. 195 of the act. The added TDS of Rs. 1,56,598 on the payment of Rs 15,65,984 should be deleted. 2. The Learned ... provision of Income Tax Act and the respective DTAA, Copy right Act 1957 and Trade Mark Act 1999, under Section 9(1)(vi) r.w.s. 195 of the act. The added TDS of Rs. 2,30,091 on the payment of Rs 23,00,915 should be deleted. 2. The Learned

Amadeus It Group Sa, Spain vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 3175/DEL/2023[2021-22]Status: DisposedITAT Delhi05 Mar 2024AY 2021-22

Bench: Sh. Kul Bharatdr. B. R. R. Kumar

For Appellant: Sh. Neeraj Jain, AdvFor Respondent: Sh. Vizay B.Vasanta, CIT-DR

alternatively, holding that booking fee of Euro 11,616,000/- received by the appellant was taxable in India as ‘royalty’ both under section 9(1)(vi) of the Act and Article 13(3) of the Treaty. 12. That without prejudice, the DRP/ assessing officer erred on facts ... appellant from various airlines in relation to the alleged use of Altea system was taxable in India as ‘royalty’ both under section 9(1)(vi) of the Act and Article 13(3) of the Treaty. 15. That without prejudice, the DRP/ assessing officer erred on facts

Saic Motor Overseas Intelligent Mobility Technology Co . Ltd., Shanghai vs. Assistant Commissioner of Income Tax, International Taxation, Hsiidc Building

In the result, appeal of the assessee is allowed for statistical purposes

ITA 2194/DEL/2023[2020-21]Status: DisposedITAT Delhi23 Feb 2024AY 2020-21

Bench: Shri Shamim Yahya & Ms. Astha Chandraasstt. Year: 2020-21

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri Vizay B. Vasanta, CIT-DR
Section 115ASection 143(3)Section 144CSection 144C(13)Section 234ASection 234BSection 270ASection 9(1)(vi)

subjecting income of the appellant to tax @ 10.92 percent (including surcharge @ 5 percent and education cess @ 3 percent) in terms of section 9(1)(vi) read with section 115A of the Act not appreciating that the said income was taxable @ 10 percent in terms of Article

Fsl Projects Limited (Formerly Frontline Soft Limited), Hyderabad vs. DCIT, Circle 14(3) (TDS), Hyderabad

In the result, subject to the above observations, appeal of the assessee is allowed

ITA 1081/HYD/2003[2003-04]Status: DisposedITAT Hyderabad13 Feb 2024AY 2003-04

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Shri P. Saketh Reddy, ARFor Respondent: Shri K. Madhusudan, CIT-DR
Section 133ASection 192(2)Section 195Section 195(3)Section 201Section 201(1)Section 9(1)(vi)

assessee made payments to IGTL Solutions (USA) and True Dial Technologies INC, without deducting the tax at source under section 195 read with section 9(1)(vi) and (vii) of the Act. According to the learned Assessing Officer the assessee having not made any deduction of tax at source without

ACIT, Circle-3(1)(2), International Taxation, New Delhi vs. Sheraton Overseas Management Corporation, Noida

In the result, appeal of the Revenue is dismissed

ITA 2392/DEL/2023[2021-22]Status: DisposedITAT Delhi13 Feb 2024AY 2021-22

Bench: Shamim Yahya & Ms. Astha Chandraasstt. Year: 2021-22

For Appellant: Shri Amit AroraFor Respondent: Shri Vizay B. Vasanta, CIT-DR
Section 143(3)Section 9Section 9(1)(vii)

well as the relationship between the two parties. We have already done this exercise in the context of issue relating to applicability of section 9(1)(vi) read with Explanation 2 and after examining and analyzing all the relevant clauses and articles of the said agreements in detail, we have ... contended that since the same come within the purview of one or the other clauses contained in Explanation 2 to section 9(1 )(vi) and (vii) as well as Article 12(3) and 12(4) of the DTAA between India and USA, the payment/consideration attributable to the same should

DCIT, Circle-2(1)(1) Int. Taxation, New Delhi vs. Inflow Technologies (Singapore) Pte. Ltd., Singapore

In the result the appeal of Revenue are dismissed

ITA 397/DEL/2023[2019-20]Status: DisposedITAT Delhi09 Feb 2024AY 2019-20

Bench: Shamim Yahya & Sh. Yogesh Kumar U.S.Ita No. 397/Del/2023, A.Y. 2019-20

Section 139(4)Section 143(2)Section 144CSection 9(1)(vi)

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘D’ : NEW DELHI) BEFORE SHAMIM YAHYA, ACCOUNTANT MEMBER AND SH. YOGESH

Expeditors International of Washington Inc, Usa vs. ACIT Circle 1(2)(2) International Taxation, New Delhi

In the result, the appeal of the assessee is allowed

ITA 2855/DEL/2023[2021-2022]Status: DisposedITAT Delhi09 Feb 2024AY 2021-2022

Bench: N.K. Billaiya & Ms. Astha Chandraasstt. Year: 2021-22

For Appellant: Shri Deepak ChopraFor Respondent: Shri Vizay B. Vasanta, CIT-DR
Section 143(3)Section 234ASection 234BSection 270ASection 9(1)(vi)Section 9(1)(vii)

amounting to INR 1,03,04,852 received by the Appellant from EI India is in nature of royalty under Explanation 2 to section 9(1)(vi) of the Act and Article 12 of the India-USA DTAA. 5. That without prejudice to any other ground of appeal

Deputy Commissioner of Income Tax International Taxation Circle 2 2, Bmtc Building Koramangala vs. The Oasis Centre Llc, Dubai Uae

In the result, appeal filed by the Revenue is allowed for statistical purposes

ITA 959/BANG/2023[2016-17]Status: DisposedITAT Bangalore08 Feb 2024AY 2016-17

Bench: Shri George George K & Shri Chandra Poojariit(It)A No.959/Bang/2023 Assessment Year : 2016-17 Dcit (International Taxation), Vs. M/S. The Oasis Centre Llc, Circle – 2(2), Land Mark Group West Wing Building Bengaluru. No.3, Off Hal Airport Main Road, Yamlur – 560 037, Bangalore. Pan : Aafct 2481 C Appellant Respondent Assessee By : Shri. K. R. Vasudevan, Advocate Revenue By : Ms. Neera Malhotra, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 07.02.2024 Date Of Pronouncement : 08.02.2024

For Appellant: Shri. K. R. Vasudevan, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru
Section 143(2)Section 250Section 9(1)(vi)

above agreements held that assessee is owner of software licence and treated the payment received by the assessee as “royalty” under section 9(1)(vi) of the Act. The AO, inter alia, observed that distinction between copyright and copyrighted article is nullified by explanation 4 to section 9(1)(vi ... assessee would be liable for the receipt of Rs.13.26 Crores, since distinction between copyright and copyrighted article is nullified by Explanation 4 to section 9(1)(vi) of the Act. For examination of the above issue, the matter is restored to AO. It is ordered accordingly. 11. In the result