Sale of software cannot be taxed as Royalty

M/s. Cast Software Inc. Vs DDIT (ITAT Delhi) Conclusion: Payment received by assessee for supply of software products to IBM India Pvt. Limited without giving right to reproduction and commercial exploitation did not fall within the ambit of’ royalty’. Held: Assessee claimed that it had entered into an agreement with IBM India Pvt. Limited for supply of software products. Assessee claimed that sale value was not taxable as the receipt of the same amount was not Royalty in nature under Article 12 of India-USA DTAA. It further claimed that assessee has sold software license without ...