Sec. 9 of Income Tax Act, 1961—Income—Income deemed to accrue or arise in India - Where software is embedded in equipment supplied for mere purpose of operating equipment, it is not a case giving independent right to use software, amount paid for supply of software is not taxable in India as Royalty‘ u/s. 9(1)(vi).

Facts: Assessee is in appeal before Tribunal regarding the taxability of receipts from sale of software as royalty u/s 9(1)(vi) as well as the India Belgium tax treaty.

Held, that an identical issue has been considered by the Tribunal in assessee’s own case for AY 2014-15 and after considering relevant facts, held that payment received by the assessee from AHIPL towards sale of software is not in the nature of royalty u/s 9(1)(vi),as well as the India-Belgium tax treaty and hence, not exigble to tax in India. Where software is embedded in equipment supplied for mere purpose of operating equipment, it is not a case giving independent right to use software, amount paid for supply of software is not taxable in India as Royalty‘ u/s. 9(1)(vi) . - AGFA HEALTHCARE NV V/s DY. CIT - [2020] 182 ITD 398 (ITAT-MUMBAI)