DCIT, CIRCLE- 1(1)(1), INTERNATIONAL TAXATION, NEW DELHI vs. ASIA SATELLITE TELECOMMUNICATIONS COMPANY LTD., NEW DELHI

This appeal by the Revenue is preferred against the order of the ld. CIT(A)- 42, New Delhi dated 15.09.2017 pertaining to A.Y 2014-15.

The solitary grievance of the Revenue is that the ld. CIT(A) erred in holding that the receipt of assessee from customers cannot be taxed as Fee for Technical Services [FTS] u/s 9(1)(vii) of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short].

At the very outset, the ld. counsel for the assessee stated that the quarrel emanating from the assessment order was that the receipts of the assessee were treated as royalty and also FTS by the Assessing Officer and ld. CIT(A) having convinced himself with the fact that receipts are taxable as royalty, as was done in earlier A.Ys, held that the same receipts cannot be taxed as FTS.

It is the say of the ld. counsel for the assessee that the quarrel relating to entire receipts treated as royalty has been settled under the Vivad se Vishwas Scheme, 2020 and the appeal of the assessee in has been dismissed as withdrawn. Therefore, this appeal of the Revenue should be treated as infructuous.

We have given thoughtful consideration to the contentions of the ld. counsel for the assessee. In our considered opinion, when the entire income has been offered for taxation and the quarrel has been settled under Vivad se Vishwas Scheme, 2020, then the Revenue should not have any grievance whatsoever. Accordingly, this appeal of the Revenue becomes otiose.

In the result the appeal of the Revenue in is dismissed.