Receipt for sale of copyrighted IFE video/audio content, not royalty: ITAT Delhi

Anuvu UK Operations Ltd. Vs ACIT (ITAT Delhi) Summary: In Anuvu UK Operations Ltd. vs ACIT (ITAT Delhi), the Tribunal addressed whether payments received by the UK-based assessee for supplying in-flight entertainment (IFE) content to Indian airlines, including Air India and Jet Airways, constituted “royalty” under Section 9(1)(vi) of the Income-tax Act, 1961 or Article 13 of the India–UK DTAA, or alternatively, “fees for technical services” (FTS) under Section 9(1)(vii) and Article 13(4). The assessee, which procured copyrighted audio-visual content and prepared it in formats compati...