Consideration for transfer of right to use software in respect of copyright is ‘royalty’

HIGH COURT OF KARNATAKA Commissioner of Income-tax, International Taxation V/s. Ansys Software (P.) Ltd. IT Appeal No. 129 OF 2007 MARCH 20, 2012 ORDER N. Kumar, J. The Revenue has preferred this appeal challenging the orders passed by the Income Tax Tribunal, which has held that the consideration paid by the assessee do not fall within the mischief of ‘royalty’ as defined under sub-clause [v] to Explanation 2 to Clause [vi] of section 9[1] of the Income-tax Act, 1961. 2. In fact, the substantial question of law which arises for consideration in this appeal arose f...