Interconnect Service Charges Not Royalty: Karnataka HC Dismisses Appeal

DCIT Vs Maxis International SDN BHD (Karnataka High Court)

The Karnataka High Court dismissed the appeal filed by the Deputy Commissioner of Income Tax (DCIT) against Maxis International SDN BHD, concerning whether interconnect service charges paid by the assessee amounted to royalty. The issue was previously addressed by a Co-ordinate Bench of the same court in ITA No.160/2015 and connected appeals. In its judgment dated 14.07.2023, the Bench held that interconnect service charges do not constitute royalty. The judgment noted that payments made to non-resident telecom operators fo

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