IN THE ITAT MUMBAI BENCH ‘L’
Deputy Director of Income-tax (International Taxation)-2(1)
V/s.
Satellite Television Asian Region Ltd.
IT APPEAL NOs. 6473 to 6475 (MUM.) OF 2009
[ASSESSMENT YEARs 2000-01 to 2002-03]
JULY 6, 2012
ORDER
Amit Shukla, Judicial Member
These are bunch of three appeals filed by the department against consolidated order dated 22-9-2009, passed by the CIT(A)-11, Mumbai in relation to penalty proceedings under Section 271C for the assessment year 2000-01, 2001-02 & 2002-03. Since the common issues are involved in all the three appeals, therefore, all the three appeals are being disposed off by this common order. For the sake of ready reference, grounds of appeal in ITA No.6473/M/2009 (AY 2000-01), which are common in all the three appeals, are reproduced herein below :-
“1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in deleting the penalty u/s. 271C for non deduction of tax at source.
2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in holding that the assessee had a bonafide belief that the channel companies are not taxable in India and hence tax was not required to be deducted on payment made to channel companies.
3. The appellant prays that the order of the ld. CIT(A) on the above grounds be set aside and that of the Assessing Officer restored.
4. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary.”
2. Brief facts of the case as culled out from the records are that the assessee ‘Star Limited’ is a company incorporated in British Virgin Island and having its principal place of business at Hong Kong, is engaged in the business of media/entertainment. The assessee is part of STAR Group of companies and is wholly owned subsidiary of ‘News Corporation” having its worldwide operations in the filed of media and entertainment. The news corporation is also having indirect holding in various ‘Channel Companies’ which are owning and telecasting TV channels in India. The description and details of ‘Channel Companies’ are as under :-
