THE COMMISSIONER OF INCOME TAX -INTERNATIONAL TAXATION -3 vs. THAICOM PUBLIC CO. LTD.

PDF · subscribers
ITA/1061/2018HC DelhiDLHC01318296201826 September 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR2 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court dismissed the appeal filed by the Revenue. The Court relied on its previous decision in Director of Income Tax versus New Skies Satellite BV, (2016) 382 ITR 114 (Del.). Following this precedent, the Court held that payment for the utilization of a satellite transponder is not royalty in terms of Article 12 of the Indo-Thai Double Taxation Avoidance Agreement. Consequently, no substantial question of law arose for consideration as the issue was considered settled by the prior ruling. The appeal was dismissed without any order as to costs.

What were the facts?

The appeal was filed by the Commissioner of Income Tax - International Taxation - 3 (the Revenue) against Thaicom Public Co. Ltd. (the Assessee). The appeal challenges an order, the specifics of which are not detailed, but it pertains to the assessment year(s) not explicitly stated. The core of the dispute involves the taxability of payments made by the Assessee for the utilization of a satellite transponder. The procedural history indicates that a previous appeal by the Revenue in ITA No. 429/2018 concerning the same Assessee and a similar issue was dismissed by the High Court. The current appeal is being considered by the Delhi High Court.

What were the issues?

1. Whether the payment for the utilization of a satellite transponder constitutes royalty under Article 12 of the Indo-Thai Double Taxation Avoidance Agreement (DTAA)? Assessee's contentions: The judgment does not record any specific contentions made by the Assessee. The Assessee appeared through 'Nemo', indicating no representation or argument presented. Revenue's contentions: The Revenue argued that the payment for the utilization of a satellite transponder should be considered royalty under Article 12 of the Indo-Thai DTAA. The Revenue's appeal is based on this contention, seeking to tax the said payment.

Which sections of the Income-tax Act were involved?

Article 12

AI-generated summary — verify with the full judgment below

$~43. * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1061/2018 THE COMMISSIONER OF INCOME TAX -INTERNATIONAL TAXATION -3

..... Appellant

Through Mr. Ruchir Bhatia, Advocate.

versus

THAICOM PUBLIC CO. LTD.

..... Respondent

Through Nemo.

CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR

O R D E R %

26.09.2018

CM No. 39619/2018 Exemption application is allowed, subject to all just exceptions. ITA No. 1061/2018 This appeal has to be dismissed in view of the decision of this Court in Director of Income Tax versus New Skies Satellite BV, (2016) 382 ITR 114 (Del.). Following this judgment, ITA No. 429/2018, The Commissioner of Income Tax-International Taxation-3 versus Thaicom Public Company Limited filed by the Revenue was dismissed holding that payment for utilization of transponder of a satellite was not royalty in terms of Article 12 of the Indo-Thai Double Taxation Avoidance Agreement. In view of the aforesaid position, no substantial question of law arises

for consideration as the issue is settled. The appeal is dismissed without any order as to costs.

SANJIV KHANNA, J.

CHANDER SHEKHAR, J. SEPTEMBER 26, 2018 VKR

Recent GST High Court judgments

Search GST case law →