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“Section 9(1)”

Section References (mined)Section 9Section 9(1)1,741 judgments

The decision most relied on for Section 9(1) 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)

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.

Ishikawajima Harima Heavy Industries Ltd. v. DIT
288 ITR 408 · 2007 · Supreme Court
394
citing judgments

Income from offshore supply of goods and services is not taxable in India if the entire transaction, including transfer of ownership and payments, occurs outside India.

CIT v. De Beers India Minerals (P.) Ltd.
346 ITR 467 · 2012 · High Court
371
citing judgments

For fees for technical or consultancy services to 'make available' technical knowledge or know-how under a DTAA, the service must transmit such knowledge, allowing the recipient to derive an enduring benefit and utilize it independently in the future.

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).

CIT v. Toshoku Ltd.
125 ITR 525 · 1980 · Supreme Court
270
citing judgments

A non-resident commission agent is not chargeable to tax in India on commission income if no business operations are carried out in India. Consequently, no TDS is required under Section 195 on such payments.

Judgments citing Section 9(1)

Oracle Systems Corporation, New Delhi vs. DDIT, New Delhi

In the result, assessee’s appeals in :

ITA 3313/DEL/2013[2005-06]Status: DisposedITAT Delhi02 Jan 2026AY 2005-06

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Indruj Sngh Rai, Spl. Counsel
Section 234ASection 250(1)(a)Section 9(1)(vi)

Oracle Systems Corpn. Vs. ADDCIT 40. The AO and the CIT(A) held that such revenue transfer on global deals, represents Royalty under section 9(1)(vi) of the Act and the Article 12(7)(b) of the DTAA. The AO held that since the assessee has earned Royalty income ... global deals under Software Support Services Agreement (SSSA) dated 01.06.2000, governing Global Deals between the assessee and OIPL. To understand the applicability of section 9(1)(vi) of the Act and Article 12(7)(b), for treating the Revenue Transfer as Royalty, it would be prudent to refer the same

Oracle Systems Corporation, New Delhi vs. ADIT, New Delhi

In the result, assessee’s appeals in :

ITA 1836/DEL/2009[2004-05]Status: DisposedITAT Delhi02 Jan 2026AY 2004-05

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Indruj Sngh Rai, Spl. Counsel
Section 234ASection 250(1)(a)Section 9(1)(vi)

Oracle Systems Corpn. Vs. ADDCIT 40. The AO and the CIT(A) held that such revenue transfer on global deals, represents Royalty under section 9(1)(vi) of the Act and the Article 12(7)(b) of the DTAA. The AO held that since the assessee has earned Royalty income ... global deals under Software Support Services Agreement (SSSA) dated 01.06.2000, governing Global Deals between the assessee and OIPL. To understand the applicability of section 9(1)(vi) of the Act and Article 12(7)(b), for treating the Revenue Transfer as Royalty, it would be prudent to refer the same

Oracle Systems Corporation, New Delhi vs. ADIT, New Delhi

In the result, assessee’s appeals in :

ITA 1835/DEL/2009[2003-04]Status: DisposedITAT Delhi02 Jan 2026AY 2003-04

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Indruj Sngh Rai, Spl. Counsel
Section 234ASection 250(1)(a)Section 9(1)(vi)

Oracle Systems Corpn. Vs. ADDCIT 40. The AO and the CIT(A) held that such revenue transfer on global deals, represents Royalty under section 9(1)(vi) of the Act and the Article 12(7)(b) of the DTAA. The AO held that since the assessee has earned Royalty income ... global deals under Software Support Services Agreement (SSSA) dated 01.06.2000, governing Global Deals between the assessee and OIPL. To understand the applicability of section 9(1)(vi) of the Act and Article 12(7)(b), for treating the Revenue Transfer as Royalty, it would be prudent to refer the same

Oracle Systems Corporation, New Delhi vs. ADIT, New Delhi

In the result, assessee’s appeals in :

ITA 1834/DEL/2009[2002-03]Status: DisposedITAT Delhi02 Jan 2026AY 2002-03

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Indruj Sngh Rai, Spl. Counsel
Section 234ASection 250(1)(a)Section 9(1)(vi)

Oracle Systems Corpn. Vs. ADDCIT 40. The AO and the CIT(A) held that such revenue transfer on global deals, represents Royalty under section 9(1)(vi) of the Act and the Article 12(7)(b) of the DTAA. The AO held that since the assessee has earned Royalty income ... global deals under Software Support Services Agreement (SSSA) dated 01.06.2000, governing Global Deals between the assessee and OIPL. To understand the applicability of section 9(1)(vi) of the Act and Article 12(7)(b), for treating the Revenue Transfer as Royalty, it would be prudent to refer the same

Oracle Systems Corporation, New Delhi vs. ADIT, New Delhi

In the result, assessee’s appeals in :

ITA 1833/DEL/2009[2001-02]Status: DisposedITAT Delhi02 Jan 2026AY 2001-02

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Indruj Sngh Rai, Spl. Counsel
Section 234ASection 250(1)(a)Section 9(1)(vi)

Oracle Systems Corpn. Vs. ADDCIT 40. The AO and the CIT(A) held that such revenue transfer on global deals, represents Royalty under section 9(1)(vi) of the Act and the Article 12(7)(b) of the DTAA. The AO held that since the assessee has earned Royalty income ... global deals under Software Support Services Agreement (SSSA) dated 01.06.2000, governing Global Deals between the assessee and OIPL. To understand the applicability of section 9(1)(vi) of the Act and Article 12(7)(b), for treating the Revenue Transfer as Royalty, it would be prudent to refer the same

Bechtel Ltd, London vs. ACIT, Circle 1(1)(2), International Taxation, New Delhi

In the result, appeal of the assessee is allowed

ITA 756/DEL/2023[2020-21]Status: DisposedITAT Delhi31 Dec 2025AY 2020-21
Section 143(2)Section 143(3)Section 144C(13)Section 44DSection 9(1)(vii)

taxable in India as it has no Permanent Establishment (PE) in India. However, the AO was of the view that as per section 9(1)(vii) of the Act, consideration received by any non-resident taxpayer for rendering any technical, managerial or consultancy services shall quality as FTS and shall

Bechtel Limited, London vs. ACIT, Circle Int. Tax 1(1)(2), New Delhi

In the result, appeal of the assessee is allowed

ITA 1816/DEL/2022[2018-19]Status: DisposedITAT Delhi31 Dec 2025AY 2018-19
Section 143(2)Section 143(3)Section 144C(13)Section 44DSection 9(1)(vii)

taxable in India as it has no Permanent Establishment (PE) in India. However, the AO was of the view that as per section 9(1)(vii) of the Act, consideration received by any non-resident taxpayer for rendering any technical, managerial or consultancy services shall quality as FTS and shall

DCIT, Circle 3(4), Mumbai vs. Tata Consultancy Services Limited, Mumbai

In the result, appeals of both, revenue and assessee are partly

ITA 2245/MUM/2025[2016-17]Status: DisposedITAT Mumbai30 Dec 2025AY 2016-17

Bench: Shri Pawan Singh & Shri Girish Agrawal

For Appellant: Shri Porus Kaka, Sr. AdvocateFor Respondent: Shri Ajay Chandra, CIT DR
Section 92CSection 92C(3)

treating the expenses incurred on import of Software packages amounting to Rs. 48,67,99, 137/-'royalty' within the meaning of section 9(1)(vi) of the Act.? 7. "Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred ... treating the expenses incurred on import of Software packages amounting to Rs. 16,61,59,534/'royalty within the meaning of section 9(1)(vi) of the Act.?" 9. "Whether, on the facts and in the circumstances of the case and in low, the Ld. CITIA) has erred in deleting

Acronis Asia Pte Ltd, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation )Range-1(1)(1), Mumbai

In the result, the appeal filed by the assessee is

ITA 2035/MUM/2025[2022-23]Status: DisposedITAT Mumbai30 Dec 2025AY 2022-23
Section 10(50)Section 143(3)Section 144C(13)

distribution arrangement and cannot, by any stretch of legal interpretation, be equated with rendition of technical services within the meaning of section 9(1)(vii) of the Act or Article 12 of the applicable tax treaties. 22. It is equally significant to note that the assessee does not distribute ... permanent establishment, the enquiry into domestic law provisions becomes largely academic. 45. Nevertheless, since extensive arguments have been advanced on the applicability of section 9(1)(vii) of the Act, we proceed to examine the issue even on a without-prejudice basis under the domestic law. 46. Section 9(1

Tata Consultancy Services Limited, Mumbai vs. Deputy Commissioner of Incometax 3(4), Mumbai

In the result, appeals of both, revenue and assessee are partly allowed for all the three assessment years

ITA 1518/MUM/2025[2018-19]Status: DisposedITAT Mumbai30 Dec 2025AY 2018-19

Bench: Shri Pawan Singh & Shri Girish Agrawal

For Appellant: Shri Porus Kaka, Sr. Advocate and Shri Manish Kumar Kanth, AdvocateFor Respondent: Shri Ajay Chandra, CIT DR
Section 1Section 92CSection 92C(3)

treating the expenses incurred on import of Software packages amounting to Rs. 48,67,99,137/-'royalty' within the meaning of section 9(1)(vi) of the Act.? 7. "Whether, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred ... treating the expenses incurred on import of Software packages amounting to Rs. 16,61,59,534/'royalty within the meaning of section 9(1)(vi) of the Act.?" 9. "Whether, on the facts and in the circumstances of the case and in low, the Ld. CITIA) has erred in deleting

Deloitte Haskins and Sells LLP, Mumbai vs. Assistant Commissioner of Income Tax, Circle 16(2), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 351/MUM/2024[2017-18]Status: DisposedITAT Mumbai30 Dec 2025AY 2017-18

Bench: Shri Amit Shukla & Shri Girish Agrawal

For Appellant: Shri P.J. Pardiwala, Sr. AdvocateFor Respondent: Shri Krishna Kumar Sr. DR
Section 143(3)Section 37(1)Section 40

Federal and state income tax accounting for audit assistance and preparation, The id AR argued that the payments made are not taxable under section 9(1)(vii) since Deloitte & Touche LLP, USA and Deloitte Tax LLP, USA have rendered professional services and not technical services and drew our attention

Deloitte Haskins and Sells LLP, Mumbai vs. Assistant Commissioner of Income Tax, Circle 16(2), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 350/MUM/2024[2013-14]Status: DisposedITAT Mumbai30 Dec 2025AY 2013-14

Bench: Shri Amit Shukla & Shri Girish Agrawal

For Appellant: Shri P.J. Pardiwala, Sr. AdvocateFor Respondent: Shri Krishna Kumar Sr. DR
Section 143(3)Section 37(1)Section 40

Federal and state income tax accounting for audit assistance and preparation, The id AR argued that the payments made are not taxable under section 9(1)(vii) since Deloitte & Touche LLP, USA and Deloitte Tax LLP, USA have rendered professional services and not technical services and drew our attention

Deloitte Haskins and Sells LLP, Mumbai vs. Assistant Commissioner of Income-Tax, Mumbai

In the result, appeal of the assessee is partly allowed

ITA 320/MUM/2024[2015-16]Status: DisposedITAT Mumbai30 Dec 2025AY 2015-16

Bench: Shri Amit Shukla & Shri Girish Agrawal

For Appellant: Shri P.J. Pardiwala, Sr. AdvocateFor Respondent: Shri Krishna Kumar Sr. DR
Section 143(3)Section 37(1)Section 40

Federal and state income tax accounting for audit assistance and preparation, The id AR argued that the payments made are not taxable under section 9(1)(vii) since Deloitte & Touche LLP, USA and Deloitte Tax LLP, USA have rendered professional services and not technical services and drew our attention

Deloitte Haskins and Sells LLP, Mumbai vs. Assistant Commissioner of Income-Tax, Mumbai

ITA 319/MUM/2024[2016-17]Status: DisposedITAT Mumbai30 Dec 2025AY 2016-17

Bench: Shri Amit Shukla & Shri Girish Agrawal

For Appellant: Shri P.J. Pardiwala, Sr. AdvocateFor Respondent: Shri Krishna Kumar Sr. DR
Section 143(3)Section 40

Federal and state income tax accounting for audit assistance and preparation, The id AR argued that the payments made are not taxable under section 9(1)(vii) since Deloitte & Touche LLP, USA and Deloitte Tax LLP, USA have rendered professional services and not technical services and drew our attention

Jeppesen Gmbh, Germany vs. ACIT, Internation Taxation, Circle-3(1)(1), Mumbai, Maharashtra

In the result, the appeal of the assessee is partly allowed

ITA 1337/MUM/2025[2022-23]Status: DisposedITAT Mumbai29 Dec 2025AY 2022-23

Bench: Us Read As Under:

Section 10(50)Section 143(3)Section 144C(13)Section 9(1)(vi)

experience and therefore the receipts would fall within the ambit of "royalty" under Article 12 of the India-Germany DTAA as well as section 9(1)(vi) of the Act. The Assessing Officer further observed that in earlier years the assessee had offered income from said services as "royalty ... source at ten per cent and had also been offered to tax in the return. Based on these aspects, and after referring to section 9(1)(vi) and Article 12, the Assessing Officer concluded that Article 12 includes imparting of any information concerning industrial, commercial or scientific knowledge, experience

Asia Today Ltd, Mumbai vs. ADIT (It) 2(2), Mumbai

In the result, Assessee's appeal is allowed

ITA 1403/MUM/2008[2004-2005]Status: DisposedITAT Mumbai24 Dec 2025AY 2004-2005

Bench: Shri Narender Kumar Choudhry & Shri Omkareshwar Chidaraassessment Year: 2004-05 M/S. Asia Today Limited, Asst. Director Of Income C/O. Zee Entertainment Enterprises Tax (International Ltd., Vs. Taxation)-2(2), 135, Dr. Annie Besant Road, Scindia House, Worli, Mumbai – 400 018 Bellard Estate, Pan: Aabca0249F Mumbai - 400039 (Appellant) (Respondent) Present For: Assessee By : Shri Niraj Sheth, Ld. A.R. Revenue By : Shri Krishna Kumar, Ld. Sr. D.R. Date Of Hearing : 10.10.2025 Date Of Pronouncement : 24.12.2025 O R D E R Per : Narender Kumar Choudhry: This Appeal Has Been Preferred By The Assessee Against The Order Dated 25.01.2007, Impugned Herein, Passed By The Ld. Commissioner Of Income Tax (Appeals) (In Short Ld. Commissioner) U/S 250 Of The Income Tax Act, 1961 (In Short ‘The Act’) For The A.Y. 2004-05. 2. The Relevant Facts For Adjudication Of This Appeal Are As Under: The Assessee, Being A Foreign Telecasting Company Incorporated In Mauritius & Having Tax Residency Certificate Of Mauritius , During The Ay Under Consideration Was Engaged In The Production & Acquiring Rights Of Various Television Films Including Feature Films, As A Copy Right Owner/Holder Of Various Hindi Feature Films Produced & Censored In India, As Mentioned In Schedule ‘C’ Annexed With The ‘Agreement Of 2 M/S Asia Today Ltd. Vs Asst. Dit (Int. Taxation)-2(2)

For Appellant: Shri Niraj Sheth, Ld. A.RFor Respondent: Shri Krishna Kumar, Ld. Sr. D.R
Section 250Section 9(1)(vi)

being exempt, on the following reasons: “ That such transaction is outside the definition/parameters of the definition of “royalty” as per Explanation-2 to section 9(1)(vi) of the Act That the Assessee being a foreign company is not liable to pay tax on the income from the transactions done ... film rights from Usha Kiron Television, India. In the notes to the computation of income, the assessee has submitted that as per Section 9(1)(vi) of the Income Tax Act, the term royalty excludes sale, exhibition or distribution of cinematographic films and hence the income is not liable

Sms Group Gmbh, Delhi vs. ACIT.Circle-3(1)(2), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 377/DEL/2025[2022-23]Status: DisposedITAT Delhi24 Dec 2025AY 2022-23

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

consideration received from supply of designs and drawings forming integral part of the sale/supply of equipments, received under various contracts, as taxable under section 9(1)(vii)of the Act, being in the nature of “fee for technical services” (FTS) under the above former and its receipt derived from sale ... consider the assessee‟s above corresponding detailed objections which stood rejected, inter alia, on the ground that its case was covered under section 9(1)(vii) of the Act since the income herein was “FTS”and was not entitled for any relief under the India – Germany Double Taxation Avoidance Agreement

Sms Group Gmbh, New Delhi vs. ACIT, Circle 3(1)(2), International Txation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 993/DEL/2023[2020-21]Status: DisposedITAT Delhi24 Dec 2025AY 2020-21

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

consideration received from supply of designs and drawings forming integral part of the sale/supply of equipments, received under various contracts, as taxable under section 9(1)(vii)of the Act, being in the nature of “fee for technical services” (FTS) under the above former and its receipt derived from sale ... consider the assessee‟s above corresponding detailed objections which stood rejected, inter alia, on the ground that its case was covered under section 9(1)(vii) of the Act since the income herein was “FTS”and was not entitled for any relief under the India – Germany Double Taxation Avoidance Agreement

Sms Group Gmbh, New Delhi vs. ACIT Circle - 3(1)(2) Intl. Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 3297/DEL/2023[2021-22]Status: DisposedITAT Delhi24 Dec 2025AY 2021-22

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

consideration received from supply of designs and drawings forming integral part of the sale/supply of equipments, received under various contracts, as taxable under section 9(1)(vii)of the Act, being in the nature of “fee for technical services” (FTS) under the above former and its receipt derived from sale ... consider the assessee‟s above corresponding detailed objections which stood rejected, inter alia, on the ground that its case was covered under section 9(1)(vii) of the Act since the income herein was “FTS”and was not entitled for any relief under the India – Germany Double Taxation Avoidance Agreement

Sms Group Gmbh, New Delhi vs. ACIT, Circle-3(1)(2) Int. Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 1592/DEL/2022[2018-19]Status: DisposedITAT Delhi24 Dec 2025AY 2018-19

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

consideration received from supply of designs and drawings forming integral part of the sale/supply of equipments, received under various contracts, as taxable under section 9(1)(vii)of the Act, being in the nature of “fee for technical services” (FTS) under the above former and its receipt derived from sale ... consider the assessee‟s above corresponding detailed objections which stood rejected, inter alia, on the ground that its case was covered under section 9(1)(vii) of the Act since the income herein was “FTS”and was not entitled for any relief under the India – Germany Double Taxation Avoidance Agreement