Bandwidth Charges Not Royalty Under Income Tax Act: Delhi HC

PCIT- International Taxation -1 Vs Bharti Airtel Ltd. (Delhi High Court) New Delhi: In a significant ruling, the Delhi High Court has dismissed an appeal filed by the Principal Commissioner of Income Tax (International Taxation) against Bharti Airtel Ltd., upholding the view that payments made for bandwidth to overseas telecom operators do not constitute ‘royalty’ under Section 9(1)(vi) of the Income Tax Act, 1961. The decision reinforces earlier judgments on the taxability of such payments. The case originated from the assessment year 2014-15, where the Assessing Officer (AO) init...