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in the case of Engineering Analysis Centre of excellence (P) Ltd [2021] 125 taxmann.com 42 (SC) wherein the Supreme Court held that amount paid for use of computer software is not payment of royalty for use of copyright in computer software and thus same does not gives rise to any income taxable in India.

18.19 Based on the above, it is submitted that the consideration for cloud computing services and / or SaaS is not in the nature of Software Royalty. Therefore, in the present case even if the subscription service rendered by the Appellant are considered to be in IT(IT)A-1544/Del/2025 LNRS Data Services Limited.

the nature of cloud computing services and / or SaaS, the consideration received by the Appellant should not be considered to be in the nature of Royalty under the provisions of the India-UK tax treaty as well as section 9(1)(vi) of the Act and not be taxable in India.

18.20 The Ld. DRP has erred in confirming an addition of receipt from subscription fees of INR 53,07,91,491/- by treating it as royalty as per Article 13 of the India-UK DTAA without appreciating that the receipt is for the use of copyrighted article and not copyright and hence cannot be taxed in India."