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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)

Aka Ausfuhrkredit-Gesellschaft Mbh, Outside India vs. Deputy Commissioner of Income-Tax Int Tax Circle 1(1)(1), Delhi

In the result, appeal of the assessee is partly allowed

ITA 1766/DEL/2025[2018-19]Status: DisposedITAT Delhi30 Oct 2025AY 2018-19

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 115A(1)(b)Section 147Section 148Section 9Section 9(1)(vi)

this remittance was liable to withholding taxes within the definition of Fee for Technical Services (FTS) under the provisions of ITA No.- 1766/Del/2025 Section 9(1)(vi) of the income tax Act and as per Article 12(4) of DTAA also, and was chargeable to tax u/s 115A(1 ... erred in taxing the management fee (processing fees) as Fees for Technical Service under the provision of section 9(1)(vii) of the Act and Article 12 of Double Taxation Avoidance Agreement between India and Germany (DTAA') 9. During the hearing before us, the Ld. AR submitted that, in respect

Snc Lavalin Inc., Delhi vs. The Assistant Commissioner of Income Tax/ Circle International Tax 3(1)(2), Delhi

In the result, the Appeal of the assessee is allowed, the Stay Application of the assessee is dismissed as infructuous

ITA 1760/DEL/2025[2022-23]Status: DisposedITAT Delhi30 Oct 2025AY 2022-23

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 143(3)Section 144C(1)

group companies for use of various software shall not be taxable as Fee for Included Services ('FIS')/Fee for Technical Services ('FTS') under section 9(1)(vii) of the Act read with the Article 12 of India-Canada DTAA. 2.1. Based on the facts and circumstances of the case ... 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 explanations 2 and 4 thereof), which deal with royalty, not being more beneficial to the appellant have no application

Dy. Commississioner of Income Tax, Dehradun vs. Weatherford Oil Tools Me Limited, Dehradun

In the result, Appeals of the Revenue’s are dismissed

ITA 168/DDN/2024[2016-17]Status: DisposedITAT Dehradun28 Oct 2025AY 2016-17

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 448Section 44BSection 9(1)(vi)Section 9(1)(vii)

services mentioned therein indicate any mining like activity; therefore, the receipts generated from such contracts are Royalty/FTS covered under Explanation (2) to Section 9(1)(vi)/9(1)(vii) of the Act, which reads as under:- Sec. 9(1)(vii) of Income Tax Act, 1961 "(vii) Income ... Therefore, now in the current scenario if the income of the assessee is Royalty or FTS, then the same would be taxed under Section 9(1)(vi)/(vii) read with Section 115A or 44DA, as the case may be." What transpires from the above referred judgment is that

Dy. Commississioner of Income Tax, Dehradun vs. Weatherford Oil Tools Me Limited, Mumbai

In the result, Appeals of the Revenue’s are dismissed

ITA 167/DDN/2024[2021-22]Status: DisposedITAT Dehradun28 Oct 2025AY 2021-22

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 448Section 44BSection 9(1)(vi)Section 9(1)(vii)

services mentioned therein indicate any mining like activity; therefore, the receipts generated from such contracts are Royalty/FTS covered under Explanation (2) to Section 9(1)(vi)/9(1)(vii) of the Act, which reads as under:- Sec. 9(1)(vii) of Income Tax Act, 1961 "(vii) Income ... Therefore, now in the current scenario if the income of the assessee is Royalty or FTS, then the same would be taxed under Section 9(1)(vi)/(vii) read with Section 115A or 44DA, as the case may be." What transpires from the above referred judgment is that

Dy. Commississioner of Income Tax, Dehradun vs. Weatherford Oil Tools Me Limited, Mumbai

In the result, Appeals of the Revenue’s are dismissed

ITA 166/DDN/2024[2020-21]Status: DisposedITAT Dehradun28 Oct 2025AY 2020-21

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 448Section 44BSection 9(1)(vi)Section 9(1)(vii)

services mentioned therein indicate any mining like activity; therefore, the receipts generated from such contracts are Royalty/FTS covered under Explanation (2) to Section 9(1)(vi)/9(1)(vii) of the Act, which reads as under:- Sec. 9(1)(vii) of Income Tax Act, 1961 "(vii) Income ... Therefore, now in the current scenario if the income of the assessee is Royalty or FTS, then the same would be taxed under Section 9(1)(vi)/(vii) read with Section 115A or 44DA, as the case may be." What transpires from the above referred judgment is that

Dy. Commississioner of Income Tax, Dehradun vs. Weatherford Oil Tools Me Limited, Mumbai

In the result, Appeals of the Revenue’s are dismissed

ITA 165/DDN/2024[2019-20]Status: DisposedITAT Dehradun28 Oct 2025AY 2019-20

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 448Section 44BSection 9(1)(vi)Section 9(1)(vii)

services mentioned therein indicate any mining like activity; therefore, the receipts generated from such contracts are Royalty/FTS covered under Explanation (2) to Section 9(1)(vi)/9(1)(vii) of the Act, which reads as under:- Sec. 9(1)(vii) of Income Tax Act, 1961 "(vii) Income ... Therefore, now in the current scenario if the income of the assessee is Royalty or FTS, then the same would be taxed under Section 9(1)(vi)/(vii) read with Section 115A or 44DA, as the case may be." What transpires from the above referred judgment is that

Dy. Commississioner of Income Tax, Dehradun vs. Weatherford Oil Tools Me Limited, Mumbai

In the result, Appeals of the Revenue's are dismissed

ITA 164/DDN/2024[2018-19]Status: DisposedITAT Dehradun28 Oct 2025AY 2018-19

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwalι.Τ.Α. No. 168/Ddn/2024 (A.Y 2016-17) Ι.Τ.Α. Νο. 163/Ddn/2024 (A.Y 2017-18) Ι.Τ.Α. Νο. 164/Ddn/2024 (A.Y 2018-19) Ι.Τ.Α. Νο. 165/Ddn/2024 (A.Y 2019-20) Ι.Τ.Α. No. 166/Ddn/2024 (A.Y 2020-21) Ι.Τ.Α. Νο. 167/Ddn/2024 (A.Y 2021-22) Dy. Commissioner Of Income Vs Weatherford Oil Tools M.E Tax, Aayakar Bhawan, 13-A, Subhash Road, Dehradun, Uttarakhand Limited. 6Th Floor, Vaman Centre, Makwana Road, J. B. Nagar, Mumbai, Maharashtra Pan: Aaacw1524G Appellant Respondent Assessee By Sh. Salil Kapoor, Adv, Sh. Amit Arora, Adv, Sh. Shivamyadav, Adv & Ms. Somya Singh, Adv Revenue By Sh. Mohan Lal Joshi, Sr. Dr Date Of Hearing 09/09/2025 Date Of Pronouncement 28/10/2025 Order Per Yogesh Kumar, U.S. Jm: The Captioned Appeals Are Filed By The Revenue Against The Orders Of Commissioner Of Income Tax (Appeals) Cit(A)-Noida, 2 ('Ld. Cit(A)' For Short), Delhi Dated 31/07/2024 For The Assessment Years2016-17, 2017-18, 2018-19, 2019-20, 2020-21 & 2021-22 Respectively. 2. All The Above Appeals Are Having Identical Issues To Be Decided, Therefore, The Captioned Appeals Filed By The Revenue Were Heard Together & Decided In This Common Order. 2

Section 44BSection 9(1)(vi)Section 9(1)(vii)

services mentioned therein indicate any mining like activity; therefore, the receipts generated from such contracts are Royalty/FTS covered under Explanation (2) to Section 9(1)(vi)/9(1)(vii) of the Act, which reads as under:- Sec. 9(1)(vii) of Income Tax Act, 1961 "(vii) Income ... Therefore, now in the current scenario if the income of the assessee is Royalty or FTS, then the same would be taxed under Section 9(1)(vi)/ (vii) read with Section 115A or 44DA, as the case may be." What transpires from the above referred judgment is that

Dy. Commississioner of Income Tax, Dehradun vs. Weatherford Oil Tools Me Limited, Mumbai

In the result, Appeals of the Revenue’s are dismissed

ITA 163/DDN/2024[2017-18]Status: DisposedITAT Dehradun28 Oct 2025AY 2017-18

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 448Section 44BSection 9(1)(vi)Section 9(1)(vii)

services mentioned therein indicate any mining like activity; therefore, the receipts generated from such contracts are Royalty/FTS covered under Explanation (2) to Section 9(1)(vi)/9(1)(vii) of the Act, which reads as under:- Sec. 9(1)(vii) of Income Tax Act, 1961 "(vii) Income ... Therefore, now in the current scenario if the income of the assessee is Royalty or FTS, then the same would be taxed under Section 9(1)(vi)/(vii) read with Section 115A or 44DA, as the case may be." What transpires from the above referred judgment is that

Solvay S A, Mumbai vs. The Deputy Commissioner of Income Tax International Tax Circle 4(2)(2), Mumbai

In the result, the appeal is partly allowed

ITA 2071/MUM/2025[2022-23]Status: DisposedITAT Mumbai27 Oct 2025AY 2022-23

Bench: Shri Saktijit Dey & Shri Narendra Kumar Billaiya

For Respondent: Shri Vijay Mehta
Section 143(3)Section 9(1)(vii)

receipt. While doing so, he did not accept assessee's plea that the receipts are in the nature of ‘FTS'. Referring to section 9(1)(vii) of the Act and Explanation (2) thereunder, the A.O. observed that firstly, while rendering the services, the assessee had imparted information concerning the working ... performance. In the absence of any ITA No.2426/Mum/2010 M/s.UPS SCS (Asia) Limited. 6 specific definition of the phrase “managerial services” as used in section 9(1)(vii) defining the “fees for technical services”, it needs to be considered in a commercial sense. It cannot be interpreted in a narrow sense

Virtue Drilling Pte Ltd, Singapore vs. DCIT, Circle Intl. Tax-3(1)(1), Delhi

In the result, Appeal of the Assessee is allowed

ITA 1399/DEL/2025[2022-23]Status: DisposedITAT Delhi24 Oct 2025AY 2022-23

Bench: Shri S. Rifaur Rahman & Shri Yogesh Kumar U.S.M/S Virtue Drilling Pte Ltd. Vs Dcit 146, 11-01, Robinson Road, Circle International Taxation Singapore-068909 3(1)(1), Delhi Pan: Aadcv1193R Appellant Respondent Assessee By Sh. Ved Jain, Adv& Sh. Ayushgarg, Ca Revenue By Sh. Saroj Kumar Dubey, Cit(Dr) Date Of Hearing 28/08/2025 Date Of Pronouncement 24/10/2025

Section 115ASection 143(3)Section 144CSection 144C(13)Section 44BSection 44DSection 9(1)(vi)

prospecting, extraction or production of mineral oil will be covered under the provisions of Section 44BB of the Act, therefore, the provisions of Section 9(1)(vi) cannot be made applicable. Thus, sought for allowing the Appeal. 6. Per contra, the Ld. Department's Representative relying on the orders ... prospecting, extraction or production of mineral oil will be covered under the provisions of Section 44BB of the Act, therefore, the provisions of Section 9(1)(vi) of the Act cannot be made applicable in following manners:- 4 Virtue Drilling PTE Ltd. Vs. DCIT “2.1Weather on the facts

Six Continents Hotels Inc, Gurgaon vs. ACIT, Circle-3(1)(2), International Taxation, New Delhi

In the result, Appeals of the Assessee in ITA No

ITA 1459/DEL/2022[2018-19]Status: DisposedITAT Delhi24 Oct 2025AY 2018-19

Bench: S. Rifaur Rahman & Shri Yogesh Kumar U.S.

Section 143(3)Section 144C(13)

their purport and meaning. 23. In this respect the Delhi Tribunal, while interpreting the meaning o f FTS as per Explanation 2 of section 9(1)(vii) of the Income tax Ac t, 1961 held as under: “…… ..A look at the above Explanation shows that it contains a definition ... travel agents to the Indian Hotels i.e . the Assessee did not render any service to the Indian hotels, as envisaged under section 9(1)(vii) of the Act; • The Assessee made payments to travel agents on behalf of the Indian hotels; and • Subsequently, the Assessee recovered such payments• made

Six Continents Hotels Inc., Usa vs. ACIT Circle- 3 (1)(2) - International Taxation, New Delhi

In the result, Appeals of the Assessee in ITA No

ITA 373/DEL/2021[2017-18]Status: DisposedITAT Delhi24 Oct 2025AY 2017-18

Bench: S. Rifaur Rahman & Shri Yogesh Kumar U.S.

Section 143(3)Section 144C(13)

their purport and meaning. 23. In this respect the Delhi Tribunal, while interpreting the meaning o f FTS as per Explanation 2 of section 9(1)(vii) of the Income tax Ac t, 1961 held as under: “…… ..A look at the above Explanation shows that it contains a definition ... travel agents to the Indian Hotels i.e . the Assessee did not render any service to the Indian hotels, as envisaged under section 9(1)(vii) of the Act; • The Assessee made payments to travel agents on behalf of the Indian hotels; and • Subsequently, the Assessee recovered such payments• made

Netflix Entertainment Services India LLP, Mumbai vs. Deputy Commissioner of Income Tax- Circle 23(1), Mumbai

In the result, appeal of the assessee is partly

ITA 6857/MUM/2024[2021-22]Status: DisposedITAT Mumbai17 Oct 2025AY 2021-22
Section 143(3)Section 144C(5)Section 234ASection 270ASection 40

content and the technological platform, and hence the payments made to its AEs partake of the character of royalty within the meaning of section 9(1)(vi) of the Act and Article 12 of the relevant tax treaties. The assessee, on the other hand, asserts that it acquires no such

Hal Offshore Ltd, New Delhi vs. ITO, Ward 2(1)(1), International Taxation, New Delhi

In the result, the Appeal of the Assessee is allowed

ITA 2084/DEL/2023[2018-19]Status: DisposedITAT Delhi17 Oct 2025AY 2018-19

Bench: S. Rifaur Rahman & Shri Yogesh Kumar U.S.

Section 133(6)Section 201Section 201(1)

whole of the contract partakes the character of work contract. The payment were not covered under Fees For Technical Services as defined in Section 9(1) (vii) of Article 12 of the DTAA as the work carried out was specifically fell under Article 7, leading to commercial profits ... Assessee company for its business in India, therefore, nature of services are in the nature of FTS as per the provisions of Section 9 (1)(vii) of the Act and Article 12 (3) of DTAA between India and Norway, therefore, the Assessee was liable to deduct/withheld

Synacor Inc., Hamburg vs. ACIT, Int.Tax. Circle- 3(1)(2), Delhi

In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose

ITA 1802/DEL/2025[2018-19]Status: DisposedITAT Delhi16 Oct 2025AY 2018-19

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.1802/िद"ी/2025(िन.व. 2018-19) Synacor Inc. 485, Sunset Drive, Office #114, Hamburg, Ny 14075 ...... अपीलाथ"/Appellant Pan: Aaxcs-8643-K बनाम Vs. Assistant Commissioner Of Income Tax, International Taxation, Circle 3(1)(2), ..... "ितवादी/Respondent Civic Centre, Minto Road, New Delhi 110002 अपीलाथ" "ारा/ Appellant By : Shri Deepak Chopra, Ms. Priya Tandon & Ms. Seetal Kandpal, Advocates "ितवादी"ारा/Respondent By : Shri M.S Nethrapal, Cit(Dr) सुनवाई क" ितिथ/ Date Of Hearing : 16/10/2025 घोषणा क" ितिथ/ Date Of Pronouncement : : 16/10/2025 आदेश/Order Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Assessment Order Dated 15.01.2025, Passed U/S. 147 R.W.S 144C(13) Of The Income Tax Act,1961(Hereinafter Referred To As ‘The Act’), For Assessment Year 2018-19. 2. Shri Deepak Chopra, Appearing On Behalf Of The Assessee At The Outset Submitted That Though The Assessee Has Raised Multiple Grounds Of Appeal, However, The Effective Grounds Assailing The Addition By Treating Sale Of Software Licenses As Fee For Technical Services (Fts) Are Ground No. 8, 10 & 16 Of Appeal.

For Appellant: Shri Deepak Chopra, Ms. Priya Tandon &For Respondent: Shri M.S Nethrapal, CIT(DR)
Section 147

Appellant for provision of software licences and rendition of maintenance and support services could not be characterised as FIS, under Explanation 2 to section 9(1)(vii) of the Act and Article 12(4) of the Double Taxation Avoidance Agreement between India and United States of America (India

Deputy Commissioner of Income Tax Intertnational Taxation Circle-1, Dehradun vs. Huyndai Heavy Industries Co Ltd, Tyagi Road Dehradun

In the result, appeals of the Revenue in ITA Nos

ITA 91/DDN/2024[2010-11]Status: DisposedITAT Dehradun15 Oct 2025AY 2010-11

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 143(3)Section 254

were made outside the territorial jurisdiction of India and had no nexus with a PE in India and as per the provisions of Section 9(1) (i) of the Act, there is no business connection between off shore supplies and the activities carried out within India, therefore, the income

Addl. Commissioner of Income Tax, Aayakar Bhawan vs. Hyundai Heavy Industries Co. Limited, Dehradun

In the result, appeals of the Revenue in ITA Nos

ITA 54/DDN/2024[2011-12]Status: DisposedITAT Dehradun15 Oct 2025AY 2011-12

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 143(3)Section 254

were made outside the territorial jurisdiction of India and had no nexus with a PE in India and as per the provisions of Section 9(1) (i) of the Act, there is no business connection between off shore supplies and the activities carried out within India, therefore, the income

Dy. Commissioner of Income Tax, Dehradun vs. Hyundai Heavy Industries Limited, Dehradun

In the result, appeals of the Revenue in ITA Nos

ITA 156/DDN/2024[2009-10]Status: DisposedITAT Dehradun15 Oct 2025AY 2009-10

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 143(3)Section 254

were made outside the territorial jurisdiction of India and had no nexus with a PE in India and as per the provisions of Section 9(1) (i) of the Act, there is no business connection between off shore supplies and the activities carried out within India, therefore, the income

M/S. Bekaert Industries Private Limited, Pune vs. Deputy Commissioner of Income Tax, Pune

The appeal of the assessee is allowed

ITA 1003/PUN/2017[2012-13]Status: DisposedITAT Pune14 Oct 2025AY 2012-13

Bench: Dr.Manish Borad & Shri Vinay Bhamore

Section 143(3)Section 40Section 9(1)(vi)

scientific equipment”. Thus, the Tribunal concluded that the impugned payment constituted royalty for use of equipment (Industrial Royalty/Equipment Royalty) in terms of section 9(1)(vi) of the Act as well as in terms of the definition of Royalty under the Article 12(3)(a) of the India-Belgium Treaty ... also find merit in the submission of the Ld. Counsel for the assessee that even as per the language of section 9(1)(vi) of the Act, the word appearing is “Plan” and not “Plant”. I find merit in the submissions of the Ld. Counsel for the assessee that

Warner Bros Distributing Inc., United States of America vs. The Assistant Commissioner of Income Tax, Circle International Taxation 4(3)(2), Mumbai

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

ITA 3411/MUM/2023[AY 2020-21]Status: DisposedITAT Mumbai13 Oct 2025

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

For Appellant: Shri Deepak Chopra (virtually present)For Respondent: Shri Satya Pal Kumar, CIT (DR)
Section 143(3)Section 144CSection 144C(5)Section 9(1)(vi)

alleging that revenues received by the Appellant from WBPIPL for distribution of theatrical movies in India can be alternatively taxed as Royalty under section 9(1)(vi) of the Act and the Treaty: 4. 2. That on the facts and circumstances of the case ... erred in not considering that the provisions of section 9(1)(vi) of the Act as applicable for the subject AY, specifically excludes sale, distribution and exhibition of cinematographic films from the ambit of Royalty; and 4. 3. That on the facts and circumstances of the case