Sale of Shrink-wrap software Not Taxable as Royalty in India

Dassault Systems Solid Works Corporation Vs DCIT (ITAT Mumbai) The issue under consideration is whether the contention of AO is correct in holding that the income from sale of shrink-wrapped software is taxable in India as a royalty? In the present case, during the course of the assessment proceedings it was observed by the A.O that the shrink-wrap application software developed and sold by the assessee was called “SolidWorks”, and was used for 3D modeling. It was observed by the A.O, that the software was sold by the assessee through distributors/resellers to the end-users in India. Accor...