India-Ireland DTAA: Software sale consideration not constitute royalty

Ixia Technologies International Ltd. Vs ACIT (IT) (ITAT Kolkata) Conclusion: Consideration received by assessee for use of or for granting the right to use a computer software would not amount to royalty as the amount received by assessee towards sale of software was on account of sale of ‘copyrighted article’ and not on transfer of any ‘copyright right’.Hence, the said sale proceeds could not be characterised as ‘Royalty’ as per Article 12 of the India-Ireland DTAA. Held: Assessee-company was a non-resident foreign company. The principal line of activity o...