Software Cost Cross-Charge Not FIS/Royalty – ITAT Delhi Follows Earlier Year in SNC Lavalin Case

SNC Lavalin Inc. Vs ACIT (ITAT Delhi) ITAT Delhi held that ₹1.45 crore GIT infrastructure charges received by the Canadian engineering firm for use of third-party software (AutoCAD, Civil 3D, etc.) from its Indian affiliates were not taxable as Fees for Included Services (FIS) or royalty. Following its own ruling for AY 2021-22, Tribunal found that: The payments were mere cost reimbursements for software licences, not consultancy. No technical knowledge was made available under Art. 12(4)(b) of the India-Canada DTAA. Software used was a copyrighted article, not transfer of rights. Held: Cr...