“ royalty income ”

CIT v. Samsung Electronics Ltd.

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.

345 ITR 494 · 2012 · High Court

461

Asia Satellite Telecommunications Co. Ltd. v. DIT

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.

332 ITR 340 · 2011 · High Court

359

DIT v. New Skies Satellite BV

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.

382 ITR 114 · 2016 · High Court

325

358 ITR 259 · 2013 · High Court

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

276

39 Taxmann.com 88 · 2013 · High Court

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.

269

CIT v. Siemens Aktiongesellschaft

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.

310 ITR 320 · 2009 · High Court

259

343 ITR 470 · 2012 · High Court

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

256

ITA 2146/DEL/2024[2015-16]Status: DisposedITAT Delhi18 Jun 2025AY 2015-16

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 royalty income

Trans World International Llc, Wilmington, Delaware, Usa vs. Deputy Commissioner of Income Ta, Circle 3(1)(1), International Taxation, Civic Centre, Near Minto Road, New Delhi

In the result, the appeal of the assessee is allowed

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 147Section 148

hands. Accordingly, in order to avoid litigation, the company had filed its return of income for FY 2015-16 and FY 2016- 17 offering royalty income to tax and has paid self-assessment tax including interest) of INR 68,99,070/-. On the same lines, it was informed that ... Networks India Pvt. Ltd. and Taj television Private limited. The assessee as per the above table offered only 5% of the bundled receipts towards royalty income i.e. it considered only 5% of the consideration receipts towards recorded content and balance 95% towards live coverage of events. The Assessing Officer asked

Trans World International Llc, Wilmington, Delaware, Usa vs. Deputy Commissioner of Income Tax, Circle 3(1)(1), International Taxation, New Delhi

ITA 1961/DEL/2024[2014-15]Status: DisposedITAT Delhi18 Jun 2025AY 2014-15

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 147Section 148

hands. Accordingly, in order to avoid litigation, the company had filed its return of income for FY 2015-16 and FY 2016- 17 offering royalty income to tax and has paid self-assessment tax including interest) of INR 68,99,070/-. On the same lines, it was informed that ... Live & coverage | recorded | Taj television limited | 17,81,340 | | Total | | 2,18,76,078/- | | Offered for tax or not | |---|---| | Yes taxed as Royalty income | | Yes taxed as Royalty income | | Yes taxed as Royalty income | | Yes taxed as Royalty income | | Yes taxed as Royalty income | | 5% taxed as Royalty income

Trans World International Llc, Delaware, Usa vs. Deputy Commissioner of Income Tax Circle (International Taxation) - 3(1)(1), New Delhi

ITA 1960/DEL/2024[2013-14]Status: DisposedITAT Delhi18 Jun 2025AY 2013-14

Bench: Shri Vikas Awasthy & Shri Brajesh Kumar Singh

Section 147Section 148

hands. Accordingly, in order to avoid litigation, the company had filed its return of income for FY 2015-16 and FY 2016- 17 offering royalty income to tax and has paid self-assessment tax (including interest) of INR 68,99,070/-. On the same lines, it was informed that ... Payer Details | Amount in Rs. | Offered for tax or not |------|----------------------|---------------------------------|---------------- | 1 | Recorded content | Aetn 18 Media Private Limited | 11,78,869 | Yes taxed as Royalty income |------|----------------------|---------------------------------|---------------- | 2 | Recorded content | NDTV | 8,50,185 | Yes taxed as Royalty income |------|----------------------|---------------------------------|---------------- | 3 | Recorded content | Wallace sports & research foundation | 1,41,031 | Yes taxed

Pdr Solutions Fzc, United Arab Emirates vs. ACIT Circle-International Taxation 2(2)(2), New Delhi

Appeal is allowed

ITA 373/DEL/2020[2016-17]Status: DisposedITAT Delhi13 Jun 2025AY 2016-17

Bench: SHRI ANUBHAV SHARMA (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)

For Appellant: Shri Porus Kaka, Sr. AdvocateFor Respondent: Shri Abhishek Sharma, CIT-DR

Section 144C(13)Section 9(1)(vi)

Delhi) has settled the issue of treating fee received by the assessee on account of domain registration services as not giving rise to royalty income and in assessee’s own case for AY 2017-18 and 2018-19 reported in (2023) 146 taxmann.com 84 (Mumbai-Trib), the coordinate Bench

M/S. Castlewick Fze, Dubai vs. ACIT, International Taxation, Circle-1(1), Chennai

ITA 459/CHNY/2025[2018-19]Status: DisposedITAT Chennai11 Jun 2025AY 2018-19

For Appellant: Shri Vikram Vijayaraghavan, AdvocateFor Respondent: Ms. E. Pavuna Sundari, CIT

Section 139Section 143(2)Section 143(3)Section 144C(1)Section 148Section 201Section 201(1)Section 234ASection 9(1)(vii)

आयकर अपीलीय अधिकरण, 'ए' न्यायपीठ, चेन्नई IN THE INCOME TAX APPELLATE TRIBUNAL 'A' BENCH, CHENNAI श्री जॉर्ज जॉर्ज के, उपाध्यक्ष

Weir Minerals (India) Private Ltd, New Delhi vs. DCIT Circle-27(1), New Delhi

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

ITA 4713/DEL/2019[2012-13]Status: DisposedITAT Delhi06 Jun 2025AY 2012-13

Bench: Ms. Madhumita Roy & Shri Khettra Mohan Roy[Assessment Year 2012-13]

Section 143(3)Section 234B

collection of the same. 1.3. The learned CIT(A) and the learned AO ought to have appreciated that the Appellant did not recognize the royalty income since there was no certainty regarding ultimate collection of the same. 1.4 The learned CIT(A) and the learned AO ought to have appreciated ... have perused the impugned assessment order and submission of the AR of the appellant. The Appellant submitted that it had not accounted the royalty income in FY 2011-12 on account of uncertainty in its recoverability. It further submitted that even in subsequent year i.e., F.Y. 2012-13, the Appellant

Ethiopian Airlines Group, Ethiopia vs. ACIT, Int. Taxation Circle-1(2)(2), Delhi

ITA 2201/DEL/2024[2017-18]Status: DisposedITAT Delhi05 Jun 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 115ASection 133ASection 147Section 195Section 9(1)Section 9(1)(vii)

Income under Income-tax Act: 5.7 Once, the nature of income is ascertained the next step is to find out the taxability of such royalty income under the domestic tax law i.e. under the provisions of Income-tax Act. Under the scope of source rule under section

Ethiopian Airlines Group, Ehiopia vs. ACIT Int. Taxation Circle-1(2)(2), Delhi

ITA 2200/DEL/2024[2016-17]Status: DisposedITAT Delhi05 Jun 2025AY 2016-17

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahman

Section 115ASection 133ASection 147Section 195Section 9(1)Section 9(1)(vii)

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: 'D' NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI

Asst. Commissioner of Income Tax, (International Taxation)-4(3)(1), Mumbai vs. United Home Entertainment Pvt Ltd., Mumbai

ITA 1559/MUM/2025[2016-17]Status: DisposedITAT Mumbai27 May 2025AY 2016-17

Bench: Shri Vikram Singh Yadav & Shri Rahul Chaudhary

For Appellant: NONEFor Respondent: Shri Krishna Kumar, Sr.DR

Section 195Section 195(2)Section 9(1)(vi)

held that payment of transponder service fees to Intelsat by assessee is a 'process' and thus it is in the nature of royalty income taxable in India in terms of the provisions of Section 9(1)(vi) of the Act as well as treaty. It was further held

New Skies Satellites Bv, C/O Ernst and Young LLP vs. Deputy Commissioner of Income Tax, Circle 2(2)(2), International Taxation, New Delhi

ITA 983/DEL/2025[2022-23]Status: DisposedITAT Delhi23 May 2025AY 2022-23

Bench: Shri Challa Nagendra Prasad & Shri Avdhesh Kumar Mishra

Section 143(3)Section 144C(13)Section 144C(5)Section 234BSection 270ASection 9(1)Section 9(1)(vi)

ITA No.983/D/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER

Krishna Plantations Pvt. Ltd, Margao vs. Assessment Unit - Income Tax Department, Delhi

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

ITA 199/PAN/2023[2020-21]Status: DisposedITAT Panaji08 May 2025AY 2020-21

Bench: Shri Pavan Kumar Gadale & Shri G D Padmahshalii T A. Nos.199/Pan/2023 (A.Y. 2020-21) Krishna Plantations Pvt Ltd, Vs National Faceless 15/1452,Nanuhouse, Varde Assessment Centre, . Valaulikar Road, 2 Floor, F-Ramp, Margoa-403601, Jawaharlal Nehru Goa. Stadium, New Delhi-110003 Pan/Gir No. Aaack6885G (अपीलाथ"/Appellant) (""यथ"/Respondent) Assessee By Smt.Bhavya Goyal.Ar Revenue By Shri.Ravindra Hattalli Sr.Dr सुनवाई क" तार"ख/Date Of Hearing 20.03.2025 घोषणा क" तार"ख/Date Of Pronouncement 08.05.2025 Order Per Pavan Kumar Gadale ,Jm: The Assesse Has Filed The Appeal Against The Order Of The Nfac/Cit(A) Delhi Passed U/Sec143(3) & U/Sec 250 Of The Act. The Assesse Has Raised The Grounds Of Appeal Challenging The Order Of The Cit(A) Sustaining The Addition Made By The Assessing Officer. 2. At The Time Of Hearing, The Ld.Ar Has Not Pressed The Ground Of Appealno.1 & Made Endorsement; Accordingly This Ground Of Appeal Is Treated As Withdrawn & Is Dismissed.

learned Assessing Officer was not correct under the facts and circumstances in disallowing a sum of Rs.21,62,039/- out of royalty income. 5. The brief facts of the case are that, the assesse company is engaged in the mining business and has filed the return of income ... activities and was accepted by the revenue. 6. On the second disputed issue, the A.O find that the assessee in the F.Y.2019-20 has received royalty income of Rs.76,35,277/- and claimed expenditure aggregating to Rs.24,63,357/- and has offered the net business income of Rs.40

Kony Inc, United States of America vs. Deputy Commissioner of Income Tax, International Taxation 1(2), Chennai, Tamil Nadu

In the result, the appeal filed by the assessee is allowed and the stay petition filed by the assessee is dismissed

ITA 185/CHNY/2025[2022-23]Status: DisposedITAT Chennai08 May 2025AY 2022-23

Bench: Shri George George K & Shri Jagadish

For Appellant: Shri R. Sivaraman, AdvocateFor Respondent: Shri V. Justin, CIT

Section 143(2)Section 4

Ld.AR argued only two issues, namely the taxability of receipts from suppliers of software license subscription fee as income chargeable to tax as ‘royalty income’ and annual maintenance charge as ‘fee for included services’. The Ld.AR submitted that the issues in question are covered in favour of assessee ... nature of royalty under the treaty provisions. That being the case, the receipt from annual maintenance charges being not ancillary or subsidiary to any royalty income cannot be brought to tax under Article 12(4)(a) of the tax treaty. Therefore, it has to be seen, whether it can come

American Chemical Society, Usa vs. DCIT (International Tax), Circle 1(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 1160/MUM/2024[2013-14]Status: DisposedITAT Mumbai08 May 2025AY 2013-14

Bench: SHRI VIKRAM SINGH YADAV (Accountant Member), SHRI ANIKESH BANERJEE (Judicial Member)

Section 143(2)Section 144C(13)Section 147Section 148ASection 234ASection 250Section 271(1)(c)Section 9(1)(vi)

view of the aforesaid, the AO passed the draft assessment order wherein amount of Rs. 46,14,79,249/- was brought to tax as royalty income in the hands of the assessee. 7 American Chemical Society 5. The assessee thereafter filed objections before the DRP. The objections were disposed ... r.w.s 144C(13) of the Act vide order dated 19.01.2024 wherein amount of Rs. 46,14,79,249/- was brought to tax as royalty income in the hands of the assessee and the assessed income was determined at Rs. 46,14,79,250/-. 7. Being aggrieved the assessee

International Air Transport Association, Mumbai (for Sending Notices) vs. Deputy Commissioner of Income Tax (International Taxation) - Circle 2(2)(1), Mumbai

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

ITA 3330/MUM/2023[2020-21]Status: DisposedITAT Mumbai29 Apr 2025AY 2020-21

Bench: Smt. Beena Pillai & Smt. Renu Jauhriआयकर अपील सं./Ita No. 3330/Mum/2023 (निर्धारण वर्ा / Assessment Year :2020-21) International Air V/S. Dcit (It), Circle 2(2)(1), Transport Association बिधम Mumbai C/O Ernst & Young Llp Room No. 1722, 17Th Floor, 14Th Floor, The Ruby, 29, Air India Building, Senapati Bapat Marg, Nariman Point, Mumbai, Dadar (West), Mumbai, Maharashtra-400021 Maharashtra-400028 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aacci4695N Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी

For Appellant: Shri Porus Kaka and Shri DiveshFor Respondent: Shri Krishna Kumar

provision of distance learning courses. Ground No. 3-Supply of physical publications a. Erred in taxing the receipts from sale of physical publications as 'royalty' income under Article 12 of the India Canada tax treaty, as being in the nature of information concerning any industrial, commercial or scientific experience ... India-Canada tax treaty. Ground No. 4-Provision of advertising space a. Erred in taxing the receipts from provision of advertising space as 'royalty' income under the Act and Article 12 of the India - Canada tax treaty on the ground that the customers use the logo, brand and goodwill

Deputy Commissioner of Income Tax (It), Circle-2(2), Bengaluru vs. Telekom Malaysia Behard, Malaysia

In the result, appeal filed by the revenue is dismissed

ITA 2432/BANG/2024[2012-13]Status: DisposedITAT Bangalore25 Apr 2025AY 2012-13

Bench: Shri Prashant Maharishi & Shri Keshav Dubey

For Appellant: Sri Manju Prasad, A.RFor Respondent: Ms. Neera Malhotra, D.R

Section 142(1)Section 143(2)Section 143(3)Section 147Section 148Section 201(1)Section 250Section 9

issued dated 28 August 2021 as to why the said amount received from M/S Vodafone South Limited should not be held as royalty income and brought to tax. In response, the Company filed a response dated 16 September 2021 wherein it referred to its submission dated

ACIT(It)-3(2)(2), Mumbai vs. Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft in Munchen, Mumbai

Accordingly, the grounds raised by the assessee are allowed

ITA 5094/MUM/2024[2020-21]Status: DisposedITAT Mumbai15 Apr 2025AY 2020-21

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

ITA 5093/MUM/2024[2021-22]Status: DisposedITAT Mumbai15 Apr 2025AY 2021-22

erred in not appreciating the fact that the Assessing Officer has rightly held that payment received from sale of software as royalty income taxable under section 9(1)(vi) of the Act and Article 12(3) of the Tax Treaty. 2. Whether on the facts and in the circumstances ... erred in not appreciating that the Assessing Officer has rightly held that payment received for software were royalty income taxable under section 9(1)(vi) of the Act especially considering Explanation 4 inserted by Finance Act 2012. 3. Whether on the facts and in the circumstances of the case

ACIT(It)-3(2)(2) Mumbai, Mumbai vs. Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft in Munchen, Mumbai

Accordingly, the grounds raised by the assessee are allowed

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

ITA 4833/MUM/2024[2021-22]Status: DisposedITAT Mumbai15 Apr 2025AY 2021-22

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft in Munchen, Mumbai vs. Deputy Commissioner of Income Tax (It)-3(2)(2), Mumbai

Accordingly, the grounds raised by the assessee are allowed

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am

ITA 4832/MUM/2024[2021-22]Status: DisposedITAT Mumbai15 Apr 2025AY 2021-22

Munchener Ruckversicherungs -Gesellschaft Aktiengesellschaft in Munchen, Mumbai vs. Deputy Commissioner of Income Tax (It)-3(2)(2), Mumbai

Accordingly, the grounds raised by the assessee are allowed

Bench: Shri Amit Shukla, Jm & Ms Padmavathy S, Am