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 The Distributors have been granted a 'non-exclusive' license to market and distribute the software products developed by the assessee;  The Distributors do not have a right to the source code of such software products;

 The Distributors are not permitted to modify, translate or recompile, add to or in any way alter the software products including its documentation;  The Distributors are not permitted to create the source code of the software products supplied under the Agreements;

(i.e. software product) with no right to use the copyright embedded in the software, therefore, it can safely or rather inescapably be concluded that the payments received by the assessee from its distributors were in the nature of sales revenue and not "royalty". On a perusal of the respective "agreements"

entered into by the assessee with its resellers/distributors the rights which were vested with them can briefly be culled out as under :

 the distributors were granted a non-exclusive license to market and distribute the software products developed by the assessee company;  the distributors did not have a right to the source code of such software products;

 the distributors were not permitted to modify, translate or recompile, add to or in any way alter the software products including its documentation;

 the distributors were not permitted to create the source code of the software products supplied under the agreements;

 the distributors were not expressly permitted to reproduce or make copies of the software products under the agreements (except a backup copy as required by the customer);