ISAT AFRICA LIMITED FZC,UNITED ARAB EMIRATES vs. DEPUTY COMMISSIONER OF INCOME TAX, MUMBAI

ITA 832/MUM/2024Status: DisposedITAT Mumbai22 September 2025AY 2018-19Bench: MS. PADMAVATHY S (Accountant Member), SHRI RAJ KUMAR CHAUHAN (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the payments were for services provided through facilities acquired, owned, and used by the assessee, not for the use or right to use equipment or a process by the Indian company. Therefore, the payments did not constitute royalty under the Act or the DTAA.

What were the facts?

The assessee, a UAE-based non-resident, received payments from an Indian company for communication technology services. The Indian tax authorities treated these payments as royalty income taxable in India, despite the assessee's claim of no Permanent Establishment and applicability of the India-UAE DTAA.

What were the issues?

Whether payments for communication technology services rendered by a non-resident to an Indian company constitute royalty income taxable in India, considering the provisions of the Income Tax Act and the India-UAE Double Taxation Avoidance Agreement.

Which sections of the Income-tax Act were involved?

Section 9(1)(vi),Section 195,Section 143(3),Section 144C(13),Section 201,Section 201(1A),Section 148A,Section 148,Section 270A,Section 234A,Section 234B,Section 234C

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Income Tax Appellate Tribunal, MUMBAI BENCH “I”, MUMBAI

Before: MS. PADMAVATHY S & SHRI RAJ KUMAR CHAUHANiSAT Africa Limited FZC

For Appellant: Shri Dinesh Kukreja, Ld. AR
Pronounced: 22.09.2025

PER RAJ KUMAR CHAUHAN (J.M.):

1.

This appeal is filed by the appellant/assessee against thefinal assessment order dated 16.01.2024 passed u/s 143(3) r.w.s 144C(13) of the Income Tax Act, 1961 („the Act‟), in pursuant to the direction of Ld. Dispute Resolution Panel-1, Mumbai-2 (Ld. DRP) u/s 144C(5) of the Act for AY. 2018-19. iSAT Africa Limited FZC

2.

The brief facts as culled out from the order of authorities below are that theassesseei.e.ISAT Africa Ltd FZC is a Non-Resident entity, tax resident in UAE. As per the official website, it is involved in the business of providin

The order continues below.

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