Sale of software not taxable in terms of India-Ireland DTAA

ACIT Vs Ixia Technologies International Ltd (ITAT Kolkata) ITAT Kolkata held that sale of software is transfer of ‘copyrighted article’ and not transfer of any ‘copyright’ and hence cannot be characterized as ‘Royalty’. Hence, the same is not taxable in terms of India-Ireland DTAA. Facts- The present appeal is preferred by the revenue on the ground that CIT(A) has erred in allowing the claim of exemption of Rs. 12,90,82,728/- on account of supply of software as the same is not in the nature of royalty under section 9(1)(vi) of the Income Tax Act. Conclusion- Held that in identical ...