Consideration paid for testing ability of candidates doesn’t qualify as royalty hence TDS not deductible

CAE Simulation Training P. Ltd. Vs DCIT (ITAT Delhi) ITAT Delhi held that consideration paid for testing the ability of candidates do not fall within the purview of royalty under Article 13 of India-UK DTAA. Hence, there is no obligation withholding of tax u/s 195 of the Income Tax Act. Facts- The assessee is a private limited company engaged in the business of training pilots and also providing services in relation to assessment of pilot candidates for its customers. The case of the assessee was selected for complete scrutiny through CASS. AO made disallowance of Rs. 1,03,45,058/- under secti...