Consideration Paid to Foreign Company for Use of Computer Software Not ‘Royalty’, No TDS Liability: Delhi High Court

The case pertains to the Assessment Year 2010-11 and was heard by the High Court of Delhi. The appellant in the case is The Commissioner of Income Tax – International Taxation – 3, and the respondent is XIOCOM (NZ) Ltd, a New Zealand-based company engaged in designing and supplying wireless broadband solutions. During the year in question, XIOCOM licensed its off-the-shelf IMS software to Zylog Systems (India) Ltd through a…