Case Law Details
Intelsat Corporation Vs DCIT (ITAT Delhi)
At the outset, it is brought to our notice by the learned AR that in assessee’s own case for the AYs 2005-06 and 2009-10 to 2011-12 in ITA Nos.2234/Del/2009, 6041/Del/2012, 451 & 6312/Del/2014, after considering the circumstances and contentions of the parties, a Coordinate Bench of this Tribunal decided the issue in favour of the assessee. The Tribunal followed the decision of the Hon’ble jurisdictional High Court in the case of Asia Satellites (supra) and DIT vs New Skies Satellite BV, 382 ITR 114 (Del). Learned AR further submitted that since there is no change in the fundamental facts permeating all these years including the Asstt. Year 2012-13, the consistent view taken by the Tribunal as well as the Hon’ble High Court has to be followed and the issue has to be answered in favour of the assessee.
ITAT held that Satellite transmission services provided by USA based company in India could not be brought to tax by treating the same as royalty income and amendment to the Income Tax Act, 1961 with a retrospective or prospective effect, cannot be read in a manner so as to extend the operation to the terms of international treaty.
FULL TEXT OF THE ITAT JUDGEMENT
Challenging the order dated 18.12.2015 u/s 143(3) read with Section 144C(13) of the Income-tax Act, 1961 (“the Act”) passed by the learned AO pursuant to the directions dated 9.10.2015 issued by the Dispute Resolution Panel (DRP), assessee preferred this appeal aggrieved by the action of the authorities below to bring the receipts as royalty in India.
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