Thaicom Public Company Limited Vs ACIT (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal dealt with an appeal challenging the validity of reassessment proceedings initiated for Assessment Year 2018–19 under sections 147 read with 144C(13) of the Income-tax Act, 1961. The reassessment was triggered by a notice issued under section 148A(b) on the ground that income received from Indian customers for providing digital broadcast services through transponders had not been offered to tax. The Assessing Officer treated such receipts as royalty taxable under section 9(1)(vi) of the Act and Article 12 of the India–Thailand DTAA, while also alleging the existence of a permanent establishment in India.
The assessee objected to the reopening, contending that it had no permanent establishment in India and that the issue was a recurring one already decided in its favour in earlier years. It relied on a judgment of the Delhi High Court in its own case, which had held that receipts from transponder services were not taxable in India under the DTAA, even after considering the amendments introduced by the Finance Act, 2012. The assessee pointed out that this binding precedent left it with no reason to offer the income to tax in the relevant year.
