Software Sales to End-Users Not Royalty Under Section 9(1)(vi): Payments for Copyrighted Articles Distinct from Copyright Transfer

HC upheld ITAT's determination that payments to three non-resident companies did not constitute 'royalty' under applicable DTAA. Court rejected Revenue's reliance on overruled Samsung Electronics precedent and aligned with Engineering Analysis SC ruling. HC clarified that sale of copyrighted software to end-users does not amount to transfer of copyright owner's exclusive rights, distinguishing between sale of copyrighted articles and transfer of copyright itself. Interpretation of Section 9(1)(vi) of Income Tax Act must be harmonized with DTAA provisions. The matter was resolved in favor of assessee, confirming no TDS liability under Section 195 for the disputed payments. .....

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