“Section 153(1)(vii)”

The case establishes that in the modern virtual world, an entity's virtual presence, rather than just physical presence, is key to determining its operational extent, especially when equipment is placed at customer premises. This principle guides the characterization of payments to non-residents, often as royalty, attracting withholding tax under Section 195, considering statutory explanations for deemed accrual of income.

For income to be characterized as 'fees for included services', the Revenue must prove that the assessee provided technical or consultancy services that involved making available technical knowledge, experience, skill, know-how, or processes. Access to a database alone does not meet this 'make available' condition.

Subscription fees paid for online access to a database, such as 'scifinder', are not considered royalty if the use does not involve the exploitation of copyright. Such payments are also not classified as fees for technical services if they do not meet the 'make available' clause requirement.

Payments for access to copyrighted databases and information collated from journals and articles are not treated as royalty payments under the Income-tax Act or tax treaties. The essential nature of the transaction is access to copyrighted material, not the use of copyright itself.

Payments for access to databases containing collated information from journals and articles are not treated as royalty payments. This is because such access does not involve the use or right to use copyrighted material in the sense contemplated by royalty provisions.

The Assessing Officer must comply with the directions of the Dispute Resolution Panel (DRP) when passing final assessment orders, and failure to do so may warrant setting aside the assessment with a direction for compliance.

Subscription fees for accessing a database are not royalty income under Section 9(1)(vi) if the customer does not acquire copyright in the data but merely a right to access it.

For income to be considered 'fees for technical/included services', the taxpayer must satisfy a twin test: rendering services and making technical knowledge available simultaneously. The mere access to a database does not constitute the rendering of such services.