Sale of software products/licenses is not royalty and hence not taxable

Digite Inc. USA Vs ADIT (ITAT Delhi) ITAT Delhi held that payment received from sale of software products/licenses doesn’t fall in the nature of royalty as per Article 12(3) and as per section 9(1)(vi) and hence the same is not taxable in India. Facts- The case of the assessee was selected for scrutiny and accordingly notices u/s 143(2) & 142(1) of the Act were issued and served upon the assessee. AO noticed that the perusal of AIR as per ITD system revealed that an amount of Rs. 1,49,48,277/- was received by the assessee which the assessee had claimed to be non taxable. Assessee was ask...