PLANETCAST INTERNATIONAL PTE.LTD,SINGAPURE vs. ACIT, CIRCLE1(1)(1) INTERNATIONAL TAXATION, DELHI

ITA 1832/DEL/2022Status: DisposedITAT Delhi14 July 2023AY 2019-2055 pages
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What did the Tribunal hold?

The Tribunal held that the receipts from satellite telecommunication services were not royalty as the assessee was merely providing services using its own equipment and bore the risks, and the customers did not have the right to use any process or equipment. Reimbursement of license fees without profit element also cannot be treated as royalty.

What were the facts?

The assessee, a non-resident, received income from various satellite telecommunication services. The Assessing Officer treated these receipts as royalty income under the Income Tax Act and the India-Singapore DTAA, as the assessee had not offered them to tax.

What were the issues?

Whether receipts from satellite telecommunication services constitute royalty income, and if cost reimbursement without profit element is taxable as royalty.

Which sections of the Income-tax Act were involved?

Section 9(1)(vi),Section 234B,Section 234D,Section 270A

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Cases cited in this judgment(15)Show list

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Income Tax Appellate Tribunal, DELHI BENCHE ‘D.’ NEW DELHI

Before: SHRI SAKTIJIT DEY, VICE- & SHRI DR. B.R.R. KUMAR

Hearing: 20.04.2023Pronounced: 14.07.2023

Captioned appeals by the assessee arise out of final assessment orders passed under section 143(3) read with section 144C(13) of the Income-tax Act, 1961 pertaining to assessment years

2018-19, 2019-20 and 2020-21, in pursuance to the directions of learned Dispute Resolution Panel (DRP).

ITA Nos. 1831, 1832/Del/2022 & 451/Del/2023 2

ITA No. 1831/Del/2022 (A.Y. 2018-18):

2.

Ground Nos. 1 & 2, being general grounds, do not require

specific adjudication.

3.

In ground Nos. 3 & 4, the assessee has challenged the taxability o

The order continues below.

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