DIRECTOR OF INCOME TAX vs. SHIN SATELLITE PUBLIC COMPANY LTD

(- i2 $-1 * to4 IN TI.IE I,IIGH COURT OF DELTII rTA 399/2012. C.M. APl'}L. 11599/2012 r'tA40012012 AT NEW DELIII ..... Appellant ..... Rcspondent ......Appellant Through: Sh. Sanjeev Sabharwal, Sr. Standing Counsel with Sh. Punit Gupta, Junior Standing Counsel, for Income Tax. . . ...Respondents Tluough: Sh. Ruchir Mishra, Advocate, for UOI. CORAM: IION'BL]' MR. JUSTICII S.ITAVINDITA BIIA'I IION'I}LE MIT. JUSI'ICE R.V.EASWAIT ORDER 27.07.2012 The cluestions Sought to be urged in these appeals by the Revcnue is whether interest under Section 234A ought to have been paid by the Assessee. In all these appcals .- arising out of different Assessment Years, thc Asses'see had clairned that the income in its hands, was not taxable as it was not "royalty" within the meaning of that expression contained in Section 9(1)(vi) of the Income Tax Act. The Assessee slrcceeded in its contention; the rnain question as to the taxability of thc arnount and whethel it was liable to bc treated as royalty income was decided by this Court in the decision reported as Asia Satellite Communiccttions Contpany Limited v. D1I (I'IA No. l3I/2003). In the mcanwhilc, thc AO had invoked Section 154 to rectify the assessment by charging interest under Section 234A. I-Iaving regard to the final ruling of this Court in Asia Satellite Contmuniccttions Contpany Lintifecl (supra) that no taxable event occurred, the I'[n'l' held that Scction 234A would not be leviable. We alc informed that this Couft's I1'A 401"/2012. C.M. APPL. 11600/2012 t'rA 402/20L2, C.M. APPL. 1160112012 DIRECTOR OF INCOME TAX versus SI{IN SATELLTIE PUBLIC COMPANY "h ,l Digitally Signed By:AMULYA Signature Not Verified

i' -t judgrnent has been carried in appeal to the Supreme Court and is pending considcration on its file. Since there is no dispute about the fact on the main issue, this Court has ruled that tlrere is no taxing event. The proceedings invoking Section 154 vis-c\-vis Section 234A do not sruvive. It is open to the Revenue to take appropriate proceedings, if available, in the light of the final decision rendered by the Supreme Cotut in the pending appeals. The appeals are dismissed but in the above terms. S. RAVINDRA BIIAT, J t5/,^,..,- R.V.EASWAR, J JULY 27,2012 'ajk' a