Amount not being royalty cannot be brought to tax in India in absence of PE

Uptodate Inc Vs DCIT (ITAT Delhi) ITAT Delhi held that amount received not being in the nature of royalty under Article 12(3) of the treaty cannot be brought to tax in India in absence of a Permanent Establishment (PE). Facts- The core issue arising for consideration is, whether the amount received by the assessee for allowing access to online database of journals and books is in the nature of royalty under section 9(1)(vi) of the Income-tax Act, 1961 (for short ‘the Act’) and Article 12 of India – United States of America (USA) Double Taxation Avoidance Agreement (DTAA). Conclusion- We ...