JUDGMENT

Manmohan, J. (Oral)--The appeals have been heard by way of video conferencing.

2. Present appeals have been filed under Section 260A of the Income Tax Act, 1961 raising the following substantial questions of law:

"1 Whether on the facts and in the circumstances of the case, the Ld. Income Tax Appellate Tribunal is correct in law in holding that the income from supply of software embedded in the hardware equipment or otherwise to customers in India does not amount to royalty under Section 9(1)(vi) of the Income Tax Act and under Article 12 of the Double Taxation Avoidance Agreement (DTAA) between India and France?

2 Whether on the facts and in the circumstances of the case, the Ld. Income Tax Appellate Tribunal is correct in law in holding that payments which are subject to withholding tax under section 195 of the Income Tax Act, 1961 are not liable for interest under section 234B of the Income Tax Act