Profits from supply of shrink-wrapped software is not royalty- ITAT Bangalore

Velankani Mauritius Vs. DDIT (ITAT Bangalore) The assessee, a Mauritius company, was engaged in supply of software. It supplied “off-the-shelf” “shrink-wrapped” software to Infosys Technologies and took the view that the profits there from was not taxable in India as it did not have a Permanent Establishment in India. The AO assessed the profits as royalty u/s 9(1)(vi) of the Act and this was confirmed by the CIT (A). On appeal by the assessee, HELD allowing the appeal: (i) In CIT vs. Samsung Electronics 227 CTR 335 the Karnataka High Court has confined its decision to the issue of res...