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“Section 9(1)(vii)”

Section References (mined)Section 9Section 9(1)(vii)933 judgments

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

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.

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.

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.

Judgments citing Section 9(1)(vii)

Timex Group India Ltd., New Delhi vs. Addi. CIT Spl.Range-9, New Delhi

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

ITA 7526/DEL/2019[2013-14]Status: DisposedITAT Delhi26 Sept 2025AY 2013-14

Bench: Shri Vimal Kumar & Shri Brajesh Kumar Singh[Assessment Year: 2013-14] M/S Timex Group India Ltd. Additional Commissioner Of Income 106-107, Ambadeep Building, Tax, Special Range-9, Kasturba Gandhi Marg, Vs New Delhi-110002 New Delhi-110001 Pan-Aaact0773C Assessee Revenue [Assessment Year: 2013-14] Additional Commissioner Of M/S Timex Group India Ltd. Income Tax, Special Range-9, 106-107, Ambadeep Building, New Delhi-110002 Vs Kasturba Gandhi Marg, New Delhi-110001 Pan-Aaact0773C Revenue Assessee Assessee By Shri Tushar Jarwal, Adv. Shri Aayush Nagpal, Adv. & Shri Vikrant Maheshwari, Adv. Revenue By Shri Rohit Garg, Cit-Dr Date Of Hearing 01.07.2025 Date Of Pronouncement 26.09.2025

Section 143(3)Section 40Section 92Section 92BSection 92C

individual fell within the ambit of independent personal services under India-Srilanka DTAA and could not be taxed as FTS under Section 9(1)(vii) of the Act. 7. With respect to taxability as FTS, it is submitted that the "make available" clause under Article 12(5)(b) of India

Swiss Re Asia Pte Ltd, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation) Circle-4(2)(2), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 1995/MUM/2022[2019-20]Status: DisposedITAT Mumbai25 Sept 2025AY 2019-20

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Sandeep Singh Karhail, Hon’Ble

For Appellant: Shri Anish Thacker & Pranay Gandhi, A/RsFor Respondent: Shri Satya Pal Kumar, CIT D/R
Section 143(2)Section 143(3)Section 144C(13)Section 9(1)(i)

liable to be treated as Fee for Technical Services. [Para 8] ■ It is noted that while examining the applicability of provisions contained in section 9(1)(vii) read with Explanation 2, the Assessing Officer had noted that even the rendering of any services by a technical or other personnel without

Six Continents Hotels, Inc., Usa vs. The Assistant Commissioner of Income Tax, Circle 3(1)(2), (International Tax), Delhi, New Delhi

In the result, appeal of the assessee is allowed

ITA 360/DEL/2025[2022-2023]Status: DisposedITAT Delhi24 Sept 2025AY 2022-2023

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.360/िद"ी/2025(िन.व. 2022-23) Six Continents Hotels, Inc. C/O- Bsr & Co. Llp, Dlf Building #10, 8Th Floor, Tower-B, Dlf Cyber City, Phase Ii, Gurgaon, Haryana-122002 ...... अपीलाथ"/Appellant Pan: Aahcs-7853-B बनाम Vs. Deputy Commissioner Of Income Tax, Circle 3(1)(2), International Taxation, ..... "ितवादी/Respondent Civic Centre, Minto Road, Delhi 110002 अपीलाथ" "ारा/ Appellant By : S/Shri S.K. Aggarwal, Himanshu Aggarwal & Manan Madan, Chartered Accountants "ितवादी"ारा/Respondent By : Shri Nikhil Kumar Govila, Cit-Dr सुनवाई क" ितिथ/ Date Of Hearing : 09/07/2025 घोषणा क" ितिथ/ Date Of Pronouncement : : 24/09/2025 आदेश/Order Per Vikas Awasthy, Jm: This Appeal By The Assessee Is Directed Against The Assessment Order Dated 26.11.2024 Passed U/S. 143(3) R.W.S. 144C(13) Of The Income Tax Act,1961(Hereinafter Referred To As ‘The Act’), For Assessment Year 2022-23. 2. The Assessee In Appeal Has Assailed The Assessment Order On Following Two Counts:

For Appellant: S/Shri S.K. Aggarwal, Himanshu Aggarwal &For Respondent: Shri Nikhil Kumar Govila, CIT-DR
Section 143(3)Section 9(1)(vii)

nature of managerial, technical, or consultancy in the nature for treating the same as FTS under the provisions of section 9(1)(vii) of the Act. 5. Shri Nikhil Kumar Govila, representing the department supported the impugned order. However, the ld. DR fairly stated that the issues raised ... appreciate their purport and meaning. 23. In this respect the Delhi Tribunal, while interpreting the meaning of FTS as per Explanation 2 of section 9(1)(vii) of the Income tax Act, 1961 held as under: “……..A look at the above Explanation shows that it contains a definition

Cochin International Airport Limited, Cochin vs. DCIT Corporate Circle 1(1), Cochin

In the result, all the appeals filed by the assessee are allowed

ITA 724/COCH/2023[2009-10]Status: DisposedITAT Cochin23 Sept 2025AY 2009-10

Bench: Shri Inturi Rama Rao & Shri Soundararajan K.

For Appellant: Shri Gopi K, CAFor Respondent: Shri Omanakuttan, Snr. AR
Section 195Section 201Section 9(1)(i)Section 9(1)(vii)

that section 9(1)(i) would not be applicable to the facts of the present case when there is a specific provision in section 9(1)(vii) and therefore the Tribunal had held that the issue should be considered afresh and remitted the same ... entitles would be liable to TDS. The AO also considered whether the said payments would fall under the provision of section 9(1)(vii) of the Act. If the said payment would fall u/s. 9(1)(vii), whether the said payments are eligible for exemption as per the DTAA. Finally

Cochin International Airport Limited, Cochin vs. DCIT Corporate Circle 1(1), Cochin

In the result, all the appeals filed by the assessee are allowed

ITA 723/COCH/2023[2008-09]Status: DisposedITAT Cochin23 Sept 2025AY 2008-09

Bench: Shri Inturi Rama Rao & Shri Soundararajan K.

For Appellant: Shri Gopi K, CAFor Respondent: Shri Omanakuttan, Snr. AR
Section 195Section 201Section 9(1)(i)Section 9(1)(vii)

that section 9(1)(i) would not be applicable to the facts of the present case when there is a specific provision in section 9(1)(vii) and therefore the Tribunal had held that the issue should be considered afresh and remitted the same ... entitles would be liable to TDS. The AO also considered whether the said payments would fall under the provision of section 9(1)(vii) of the Act. If the said payment would fall u/s. 9(1)(vii), whether the said payments are eligible for exemption as per the DTAA. Finally

Cochin International Airport Limited, Cochin vs. DCIT Corporate Circle 1(1), Cochin

ITA 722/COCH/2023[2007-08]Status: DisposedITAT Cochin23 Sept 2025AY 2007-08

Bench: Shri Inturi Rama Rao & Shri Soundararajan K.

For Appellant: Shri Gopi K, САFor Respondent: Shri Omanakuttan, Snr. AR
Section 195Section 201Section 9(1)(i)Section 9(1)(vii)

that section 9(1)(i) would not be applicable to the facts of the present case when there is a specific provision in section 9(1)(vii) and therefore the Tribunal had held that the issue should be considered afresh and remitted the same ... entitles would be liable to TDS. The AO also considered whether the said payments would fall under the provision of section 9(1)(vii) of the Act. If the said payment would fall u/s. 9(1)(vii), whether the said payments are eligible for exemption as per the DTAA. Finally

Cochin International Airport Limited, Cochin vs. DCIT Corporate Circle 1(1), Cochin

In the result, all the appeals filed by the assessee are allowed

ITA 721/COCH/2023[2006-07]Status: DisposedITAT Cochin23 Sept 2025AY 2006-07

Bench: Shri Inturi Rama Rao & Shri Soundararajan K.

For Appellant: Shri Gopi K, CAFor Respondent: Shri Omanakuttan, Snr. AR
Section 195Section 201Section 9(1)(i)Section 9(1)(vii)

that section 9(1)(i) would not be applicable to the facts of the present case when there is a specific provision in section 9(1)(vii) and therefore the Tribunal had held that the issue should be considered afresh and remitted the same ... entitles would be liable to TDS. The AO also considered whether the said payments would fall under the provision of section 9(1)(vii) of the Act. If the said payment would fall u/s. 9(1)(vii), whether the said payments are eligible for exemption as per the DTAA. Finally

Cochin International Airport Limited, Cochin vs. DCIT Corporate Circle 1(1), Cochin

ITA 720/COCH/2023[2005-06]Status: DisposedITAT Cochin23 Sept 2025AY 2005-06

Bench: Shri Inturi Rama Rao & Shri Soundararajan K.

For Appellant: Shri Gopi K, CAFor Respondent: Shri Omanakuttan, Snr. AR
Section 195Section 201Section 9(1)(i)Section 9(1)(vii)

that section 9(1)(i) would not be applicable to the facts of the present case when there is a specific provision in section 9(1)(vii) and therefore the Tribunal had held that the issue should be considered afresh and remitted the same to the AO. Page ... entitles would be liable to TDS. The AO also considered whether the said payments would fall under the provision of section 9(1)(vii) of the Act. If the said payment would fall u/s. 9(1)(vii), whether the said payments are eligible for exemption as per the DTAA. Finally

Isat Africa Limited Fzc, United Arab Emirates vs. Deputy Commissioner of Income Tax, Mumbai

In the result, the final assessment order passed by AO is set aside and the appeal of the assessee is accordingly allowed in above terms

ITA 832/MUM/2024[2018-19]Status: DisposedITAT Mumbai22 Sept 2025AY 2018-19

Bench: Ms. Padmavathy S & Shri Raj Kumar Chauhanisat Africa Limited Fzc Vs. The Deputy Commissioner Office No. 5 Pre-Fab, C Phase Ii, Of Income Tax Fujairah Free Zone Fujairah, Dubai, International Tax Circle- United Arab Emirates, Dubai - 2(2)(2) 999999 Mumbai, Maharashtra. Pan – Aagci8661Q (Appellant) (Respondent)

Section 143(3)Section 144C(5)Section 148Section 148ASection 195Section 201Section 9(1)Section 9(1)(vi)

mentioned in Indo Singapore DTAA but it is not specifically defined in treaty itself. It was submitted that the Explanation 6 to section 9(1)(vii) was inserted vide Finance Act, 2012 with retrospective effect from 1-6-1976 for expedient tax administration in view of conflicting views expressed ... Indo-Singapore tax treaty, domestic law meaning of expression 'process' must prevail and going by domestic law meaning under Explanation 6 to section 9(1)(vii), any transmission by satellite (including up-linking, amplification, conversion for down-linking of any signal), cable, optic-fiber or by any other similar technology

Forcepoint International Technology Limited, Noida vs. ACIT, Circle Int. Taxation 1(3)(1), New Delhi

In the result, appeal of assessee in ITA No

ITA 976/DEL/2023[2020-21]Status: DisposedITAT Delhi22 Sept 2025AY 2020-21

Bench: Shri Anubhav Sharma & Shri Naveen Chandra

For Appellant: Shri Anil Bhalla, CAFor Respondent: Shri Vijay B. Basanta CIT- DR
Section 139(1)Section 9(1)(vii)

technical services and its income of Rs.93,14,40,396/- is taxable as FTS under Article 12 of India- Ireland DTAA and under Section 9(1)(vii) of the Act. 1.1 Learned CIT(A) has erred both on facts and in law by contending that direct human involvement ... confirmed by Hon'ble Supreme Court 330 ITR 239 (SC), wherein it was held that the technical services described in Section 9(1)(vii) read with explanation 2 would have to mean services rendered by human and that at the time of delivery of service there

Dy. Commissioner of Income Tax, Dehradun vs. Halliburton Offshore Services Inc., Maharashtra

ITA 188/DDN/2024[2018-19]Status: DisposedITAT Dehradun10 Sept 2025AY 2018-19

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

Section 244ASection 44BSection 9(1)(i)Section 9(1)(vi)

whether the ‘provision of software and AMC, support services, training of software etc' qualify as fee for technical services within the provisions of section 9(1)(vii) of the Act or the services were such which are covered within the provisions of section 44BB of the Act. This would depend ... basically in these activities assessee is providing technical and consultancy services and therefore covered under the definition of FTS as per provision of section 9 (1) (vii) of the Act. 5.8 On perusal of the judgment of Hon'ble Supreme court of India in civil appeal number

Dy Commissioner of Income Tax, Dehradun vs. Halliburton Offshore Services Inc, Maharastra

ITA 187/DDN/2024[2017-18]Status: DisposedITAT Dehradun10 Sept 2025AY 2017-18

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

Section 244ASection 44BSection 9(1)(i)Section 9(1)(vi)

whether the ‘provision of software and AMC, support services, training of software etc' qualify as fee for technical services within the provisions of section 9(1)(vii) of the Act or the services were such which are covered within the provisions of section 44BB of the Act. This would depend ... basically in these activities assessee is providing technical and consultancy services and therefore covered under the definition of FTS as per provision of section 9 (1) (vii) of the Act. 5.8 On perusal of the judgment of Hon'ble Supreme court of India in civil appeal number

Dy. Commississioner of Income Tax, Dehradun vs. Halliburton Off Shore Services Inc, Dehradun

ITA 175/DDN/2024[2016-17]Status: DisposedITAT Dehradun10 Sept 2025AY 2016-17
Section 244ASection 44BSection 9(1)(i)Section 9(1)(vi)

whether the ‘provision of software and AMC, support services, training of software etc' qualify as fee for technical services within the provisions of section 9(1)(vii) of the Act or the services were such which are covered within the provisions of section 44BB of the Act. This would depend ... basically in these activities assessee is providing technical and consultancy services and therefore covered under the definition of FTS as per provision of section 9 (1) (vii) of the Act. 5.8 On perusal of the judgment of Hon'ble Supreme court of India in civil appeal number

Anuvu Uk Operations Ltd (Earlier Knows As Global Eagle Entertainment Limited), London vs. ACIT, Circle-Int.Taxation 1(1)(1), Delhi

In the result, appeal of the assessee is partly allowed

ITA 806/DEL/2023[2020-21]Status: DisposedITAT Delhi03 Sept 2025AY 2020-21

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.1879 और 1878/िद"ी/2022 (िन.व. 2018-19 और 2019-20)

For Appellant: Shri Ravi Sharma & Ms. Shruti Khimta, AdvocatesFor Respondent: Ms. Anjula Jain, CIT(DR)
Section 143(3)Section 9(1)(vi)Section 9(1)(vii)

आयकर अपीलीय अिधकरण िद"ी पीठ “डी”, िद"ी "ी िवकास अव"थी, "ाियक सद" एवं "ी नवीन चं", लेखाकार सद" के सम" IN

Anuvu Uk Operations Limited (Earlier Known As Global Eagle Entertainment Limited), United Kingdom vs. Assistant Commissioner of Income-Tax, Int Tax Circle 1(1)(1), New Delhi

In the result, appeal of the assessee is partly allowed

ITA 3338/DEL/2023[AY 2021-22]Status: DisposedITAT Delhi03 Sept 2025

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.1879 और 1878/िद"ी/2022 (िन.व. 2018-19 और 2019-20)

For Appellant: Shri Ravi Sharma & Ms. Shruti Khimta, AdvocatesFor Respondent: Ms. Anjula Jain, CIT(DR)
Section 143(3)Section 9(1)(vi)Section 9(1)(vii)

आयकर अपीलीय अिधकरण िद"ी पीठ “डी”, िद"ी "ी िवकास अव"थी, "ाियक सद" एवं "ी नवीन चं", लेखाकार सद" के सम" IN

Anuvu Uk Operations Ltd (Erstwhile Known As Global Eagle Entertainment Limited), London vs. ACIT, Int. Tax. 1(3)(1), New Delhi

In the result, appeal of the assessee is partly allowed

ITA 1879/DEL/2022[2018-19]Status: DisposedITAT Delhi03 Sept 2025AY 2018-19

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.1879 और 1878/िद"ी/2022 (िन.व. 2018-19 और 2019-20)

For Appellant: Shri Ravi Sharma & Ms. Shruti Khimta, AdvocatesFor Respondent: Ms. Anjula Jain, CIT(DR)
Section 143(3)Section 9(1)(vi)Section 9(1)(vii)

आयकर अपीलीय अिधकरण िद"ी पीठ “डी”, िद"ी "ी िवकास अव"थी, "ाियक सद" एवं "ी नवीन चं", लेखाकार सद" के सम" IN

Anuvu Uk Operations Ltd (Erstwhile Known As Global Eagle Entertainment Limited), London vs. ACIT, Int. Tax. 1(3)(1), New Delhi

In the result, appeal of the assessee is partly allowed

ITA 1878/DEL/2022[2019-20]Status: DisposedITAT Delhi03 Sept 2025AY 2019-20

Bench: Shri Vikas Awasthy & Shri Naveen Chandraआअसं.1879 और 1878/िद"ी/2022 (िन.व. 2018-19 और 2019-20)

For Appellant: Shri Ravi Sharma & Ms. Shruti Khimta, AdvocatesFor Respondent: Ms. Anjula Jain, CIT(DR)
Section 143(3)Section 9(1)(vi)Section 9(1)(vii)

आयकर अपीलीय अिधकरण िद"ी पीठ “डी”, िद"ी "ी िवकास अव"थी, "ाियक सद" एवं "ी नवीन चं", लेखाकार सद" के सम" IN

M/S.Apollo Tyres Ltd, Cochin vs. The Principal Commissioner of Incometax, Cochin

In the result, the appeal filed by the assessee stands partly allowed for statistical purposes

ITA 609/COCH/2017[2013-14]Status: DisposedITAT Cochin01 Sept 2025AY 2013-14

Bench: Shri Inturi Rama Rao, Am & Shri Rahul Chaudhary, Jm Assessment Year: 2013-14 Apollo Tyres Ltd. .......... Appellant 3Rd Floor, Areekal Mansion, Panampilly Nagar, Kochi 682036 [Pan: Aaaca6990Q] Vs. Dcit, Corporate Circle-1(1), Kochi ......... Respondent Assessee By: Shri Abraham Joseph Markos, Adv. Revenue By: Shri Sanjit Kumar Das, Cit-Dr Date Of Hearing: 20.08.2025 Date Of Pronouncement: 01.09.2025

For Appellant: Shri Abraham Joseph Markos, AdvFor Respondent: Shri Sanjit Kumar Das, CIT-DR
Section 115JSection 143(3)Section 32Section 32(1)(iia)Section 35Section 43(1)Section 92C

towards Salary and other R&D expenses within the scope of "Fee for technical Services under explanation 2 of section 9(1)(vii)of Income Tax Act and liable for TDS. 5.2 The Ld AO erred in not appreciating that the assessee company has made payment of Rs 1

Assistant Commissioner of Income Tax-5, Kanpur vs. M.K.U Pvt. Ltd., Kanpur

In the result, appeal in ITA No

ITA 509/LKW/2018[2011-12]Status: DisposedITAT Lucknow29 Aug 2025AY 2011-12

Bench: SH. KUL BHARAT, VICE PRESIDENT AND SH. NIKHIL CHOUDHARY (Accountant Member)

For Appellant: Sh. P.K. Kapoor, C.AFor Respondent: Sh. R.K. Agarwal, CIT DR
Section 143Section 143(3)Section 147Section 250

strength. From the same, he concluded that testing charges were in the nature of fee for technical services which were covered under section 9(1)(vii) of the Act and TDS should have been deducted under section 195 of the Act for such payment. Since the assessee had not deducted ... records and other parties. The ld. AO, however, held that the payment was in the nature of, ‘fee for technical services’ covered under section 9 (1)(vii) of the Act and placing reliance on the decision of the Hon’ble Delhi High Court in the case of Havells India Limited

Temenos Headquarters Sa, Chennai vs. Assistant Commissioner of Income Tax, Chennai

In the result, the appeals filed by the assessee for assessment years 2022-

ITA 558/CHNY/2025[2022-23]Status: DisposedITAT Chennai28 Aug 2025AY 2022-23

Bench: Shri George George K & Shri S.R. Raghunathaआयकर अपील सं./Ita No.: 558/Chny/2025 धनिाजरण वर्ज / Assessment Year: 2022-23 & S.A. No.: 50/Chny/2025 [In I.T.A. No.558/Chny/2025] धनिाजरण वर्ज/Assessment Year: 2022-23

For Appellant: Shri. R. Sivaraman, AdvocateFor Respondent: Ms. Sita Krisnamoorthy, JCIT
Section 143(2)Section 143(3)Section 144C(5)

from annual maintenance charges is in the nature of FIS under Article 12(4)(a) of India - USA DTAA as well as under section 9(1)(vii) of the Act. However, while deciding the issue of taxability of receipts from granting of licence, we have held that they