Payments for transponder hire charges cannot be treated as ‘royalty’

Times Global Broadcasting Co Ltd Vs. DCIT [ITAT Mumbai)

ITAT held that the amount paid towards transponder²hire charges by a TV Channel company to a non-resident cannot be treated as ‘royalty’ under the Income-tax Act, 1961 (the Act). The Tribunal relying on the Supreme Court decision in the case of  GE India Technology Centre P Ltd v. CIT [2010] 327 ITR 456 (SC) and Delhi High Court’s decision in the case of Asia Satellite telecommunications Co Ltd v. DIT [2011] 322 ITR 140 (Del) held that since the amount was not liable to tax the same cannot be disallowed under Section 40(a)(i) of the Act.

INCOME TAX APPELLATE TRIBUNAL, MUMBAI

I.T.A.No. 5868/Mum/2010 (Assessment year: 2007- 08)

Times Global Broadcasting Co. Ltd. Vs. DCIT

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