Payment made to purchase equipment for research is not royalty when no research is carried out: ITAT

The ITAT held that where under an agreement with foreign company for carrying out research, assessee made payment to foreign company for purchase of equipments and appliances but no research activity had taken place, said payment could not be treated as royalty liable to TDS.

Aatash Power (P.) Ltd. v. Income Tax Officer, International Taxation-II, Ahmedabad* [2017] 78 taxmann.com 202 (Ahmedabad - Trib.)