INCOME TAX ACT, 1961

--Income deemed to accrue or arise in India--Under section 9(1)(vi) Royalty income --Assessee-company incorporated under the law of Netherlands, had claimed benefit of article 12 of DTAA and sought to pay tax at concessional rate at 10 per cent in respect of royalty income received from an Indian company. Department however disallowed the claim as assessee was not the beneficial owner of the musical tracks in respect of which royalty income was earned. According to Commissioner (Appeals) and Tribunal, on the basis of the evidence in the form of certificate from revenue authorities in Netherlands it was certified that assessee was a beneficial owner of royalty received and entitled to benefit of article 12. Held: Rightly so, as the department had not been able to show anything on record to controvert the findings of fact arrived at by Commissioner (Appeals) and Tribunal.