GSMA LTD.,MUMBAI vs. DCIT (INTERNATIONAL TAXATION), NEW DELHI

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ITA 3035/DEL/2019Status: DisposedITAT Delhi08 December 2023AY 2015-16Bench: SHRI G.S. PANNU (Vice President), SHRI SAKTIJIT DEY (Vice President)12 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the administrative fees received by the assessee do not constitute royalty under Section 9(1)(vi) of the Income-tax Act or Article 12(3) of the India-USA DTAA. The assessee merely provides access to a database of unique numbers, not a right to use any intellectual property or impart technical information.

What were the facts?

The assessee, a US-based non-profit entity, provides unique IMEI numbers for mobile devices globally. In India, it has an agreement with MSAI for revenue sharing, where MSAI collects fees from Indian manufacturers and transfers 70% to the assessee.

What were the issues?

Whether the administrative fees received for providing IMEI/TAC numbers are taxable as royalty under domestic law and the India-USA DTAA.

Which sections of the Income-tax Act were involved?

Section 9(1)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI

Before: SHRI G.S. PANNU, VICE- & SHRI SAKTIJIT DEY, VICE-

Hearing: 15.09.2023Pronounced: 08.12.2023

per law.

14.

Other grounds raised by the assessee, being consequential and pre-mature, do not require adjudication.

15.

In the result, appeals are allowed, as indicated above.

Order pronounced in the open court on 08/12/2023.

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