Director of Income-tax v. New Skies Satellite

140 TTJ 195Income Tax Appellate Tribunal2011#3159 most cited

What is Director of Income-tax v. New Skies Satellite authority for?

Royalty income does not arise if the payer merely receives a service without control or possession of the equipment used to provide that service. The right to use equipment implies the payee has control and can employ the equipment for their own purposes.

37

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2017 to 2025.

Also referred to as

Director of Income-tax v. New Skies Satellite · royalty income · use of equipment · control over equipment · right to use · section 9(1)(vi)

Sections most often in play

Section 143(3)Section 144C(13)Section 12Section 12(3)(a)Section 12(4)(b)Section 142(1)Section 143(2)Section 234A

Issues it is cited on

section 9(l)(vii)section 9(l)(vi)use of equipmentsection 14(a)section 90(1)section 9(l)copyrighted articlesection 201(3)make available clausedependent agent pefixed place pesection 90(2)

Judgments citing Director of Income-tax v. New Skies Satellite

Ariba Inc., New Delhi vs. ADIT, New Delhi

In the result, all these appeals filed by the assessee stand partly

ITA 1538/DEL/2013[2009-10]Status: DisposedITAT Delhi17 Oct 2022AY 2009-10
For Appellant: Shri Himanshu Sinha, AdvocateFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 115ASection 182Section 234BSection 28Section 44DSection 9(1)

…erely receives a service without control or possession of the equipment, no royalty can arise. 27. To the same effect are the following decisions: • Director of Income-tax v. New Skies Satellite BY (2016) 382 ITR 114 (Del HC) • Yahoo India (P.) Ltd. v. DCIT 140 TTJ 195 (Mumbai) 28. It is submitted that at no point of time the control of equipment is exclusively granted to Ariba India or its clients. The observations of the CIT(A) @ para 49 of the Impugned Order for AYs 2004-05 to 2006-07) regarding control of the equipment by grant of access through userid and password is wholly erroneous. 29. Right to use wo…

Ariba Inc., New Delhi vs. ADIT, New Delhi

In the result, all these appeals filed by the assessee stand partly

ITA 3923/DEL/2012[2008-09]Status: DisposedITAT Delhi17 Oct 2022AY 2008-09
For Appellant: Shri Himanshu Sinha, AdvocateFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 115ASection 182Section 234BSection 28Section 44DSection 9(1)

…erely receives a service without control or possession of the equipment, no royalty can arise. 27. To the same effect are the following decisions: • Director of Income-tax v. New Skies Satellite BY (2016) 382 ITR 114 (Del HC) • Yahoo India (P.) Ltd. v. DCIT 140 TTJ 195 (Mumbai) 28. It is submitted that at no point of time the control of equipment is exclusively granted to Ariba India or its clients. The observations of the CIT(A) @ para 49 of the Impugned Order for AYs 2004-05 to 2006-07) regarding control of the equipment by grant of access through userid and password is wholly erroneous. 29. Right to use wo…

Ariba Inc., New Delhi vs. ADIT, New Delhi

In the result, all these appeals filed by the assessee stand partly

ITA 6090/DEL/2010[2007-08]Status: DisposedITAT Delhi17 Oct 2022AY 2007-08
For Appellant: Shri Himanshu Sinha, AdvocateFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 115ASection 182Section 234BSection 28Section 44DSection 9(1)

…erely receives a service without control or possession of the equipment, no royalty can arise. 27. To the same effect are the following decisions: • Director of Income-tax v. New Skies Satellite BY (2016) 382 ITR 114 (Del HC) • Yahoo India (P.) Ltd. v. DCIT 140 TTJ 195 (Mumbai) 28. It is submitted that at no point of time the control of equipment is exclusively granted to Ariba India or its clients. The observations of the CIT(A) @ para 49 of the Impugned Order for AYs 2004-05 to 2006-07) regarding control of the equipment by grant of access through userid and password is wholly erroneous. 29. Right to use wo…

Ariba Inc, New Delhi vs. ADIT (Intl Taxation), New Delhi

In the result, all these appeals filed by the assessee stand partly

ITA 4584/DEL/2010[2006-07]Status: DisposedITAT Delhi17 Oct 2022AY 2006-07
For Appellant: Shri Himanshu Sinha, AdvocateFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 115ASection 182Section 234BSection 28Section 44DSection 9(1)

…erely receives a service without control or possession of the equipment, no royalty can arise. 27. To the same effect are the following decisions: • Director of Income-tax v. New Skies Satellite BY (2016) 382 ITR 114 (Del HC) • Yahoo India (P.) Ltd. v. DCIT 140 TTJ 195 (Mumbai) 28. It is submitted that at no point of time the control of equipment is exclusively granted to Ariba India or its clients. The observations of the CIT(A) @ para 49 of the Impugned Order for AYs 2004-05 to 2006-07) regarding control of the equipment by grant of access through userid and password is wholly erroneous. 29. Right to use wo…

Ariba Inc, New Delhi vs. ADIT (Intl Taxation), New Delhi

In the result, all these appeals filed by the assessee stand partly

ITA 4583/DEL/2010[2005-06]Status: DisposedITAT Delhi17 Oct 2022AY 2005-06
For Appellant: Shri Himanshu Sinha, AdvocateFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 115ASection 182Section 234BSection 28Section 44DSection 9(1)

…erely receives a service without control or possession of the equipment, no royalty can arise. 27. To the same effect are the following decisions: • Director of Income-tax v. New Skies Satellite BY (2016) 382 ITR 114 (Del HC) • Yahoo India (P.) Ltd. v. DCIT 140 TTJ 195 (Mumbai) 28. It is submitted that at no point of time the control of equipment is exclusively granted to Ariba India or its clients. The observations of the CIT(A) @ para 49 of the Impugned Order for AYs 2004-05 to 2006-07) regarding control of the equipment by grant of access through userid and password is wholly erroneous. 29. Right to use wo…

Ariba Inc, New Delhi vs. ADIT (Intl Taxation), New Delhi

In the result, all these appeals filed by the assessee stand partly

ITA 4582/DEL/2010[2004-05]Status: DisposedITAT Delhi17 Oct 2022AY 2004-05
For Appellant: Shri Himanshu Sinha, AdvocateFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 115ASection 182Section 234BSection 28Section 44DSection 9(1)

…erely receives a service without control or possession of the equipment, no royalty can arise. 27. To the same effect are the following decisions: • Director of Income-tax v. New Skies Satellite BY (2016) 382 ITR 114 (Del HC) • Yahoo India (P.) Ltd. v. DCIT 140 TTJ 195 (Mumbai) 28. It is submitted that at no point of time the control of equipment is exclusively granted to Ariba India or its clients. The observations of the CIT(A) @ para 49 of the Impugned Order for AYs 2004-05 to 2006-07) regarding control of the equipment by grant of access through userid and password is wholly erroneous. 29. Right to use wo…

Play Games 24 X 7 Private Limited, Mumbai vs. Dy.CIT-13, Mumbai

In the result, the appeal is partly allowed in the terms indicated above

ITA 3830/MUM/2019[2014-15]Status: DisposedITAT Mumbai21 Jun 2022AY 2014-15
Section 263Section 40Section 9

…unlike the fact in case of the Appellant. vi. On the facts and circumstances of the case and in law, the learned PR. CIT erred in not considering the reliance placed by the Appellant on decision laid down by Hon'ble Mumbai Tribunal in the case of Yahoo India (140 TTJ 195) and Pinstorm Technology (54 SOT 78), and decision of Kolkata Tribunal in the case of Right Florist (32 taxmann.com 99), without appreciating that the similar facts are involved in the case of the Appellant. 3. So far as the above issue is concerned, learned representatives fairly agree that the above issue is now covered, on merits in favour of…

Edenred Pte Limited, Mumbai vs. Dy. CIT (It)- 2 (2)(1), Mumbai

In the result, appeal is allowed, as indicated above

ITA 6267/MUM/2019[2016-17]Status: DisposedITAT Mumbai22 Sept 2021AY 2016-17

Bench: Shri Saktijit Dey () & Shri Rajesh Kumar ()

Section 143(3)

…vices offered by the portal would be covered by the expression royalty. We find that subsequently, after considering the decision in Cargo Community Network (P.) Ltd. (supra), Mumbai ITAT in the case of Standard Chartered Bank 11 ITR 721 and Yahoo India Pvt. 140 TTJ 195 held that no part Edenred Pte ltd. or privilege was granted to the company to independently use the computer. In the case IMT Labs (India) (P.) Ltd. (supra), the assessee, on Indian company, entered into an agreement with a non-resident American company for securing license of a particular software, which the applicant is entitled to use. The ap…

Atos Information Technology Singapore Pte. Ltd., Mumbai vs. D.C.I.T. (International Taxation) Range - 1(1)(2), Mumbai

In the result, appeal is partly allowed

ITA 7144/MUM/2017[2014-15]Status: DisposedITAT Mumbai30 Mar 2021AY 2014-15

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan ()

Section 143(3)Section 9(1)(vi)

…vices offered by the portal would be covered by the expression royalty. We find that subsequently, after considering the decision in Cargo Community Network (P.) Ltd. (supra), Mumbai ITAT in the case of Standard Chartered Bank 11 ITR 721 and Yahoo India Pvt. 140 TTJ 195 held that no part Edenred Pte Ltd. or privilege was granted to the company to independently use the computer. In the case IMT Labs (India) (P.) Ltd. (supra), the assessee, an Indian company, entered into an agreement with a non-resident American company for securing license of a particular software, which the applicant is entitled to use. The ap…

Edenred Pte Ltd, Mumbai vs. DCIT (It) 2(2)(1), Mumbai

In the result, appeal filed by the assessee is partly allowed

ITA 2178/MUM/2017[2013-14]Status: DisposedITAT Mumbai23 Oct 2020AY 2013-14

Bench: Shri Saktijit Dey (Jm) & Shri N.K. Pradhan (Am) Assessment Year: 2013-14 Edenred Pte Limited, The Dy. Commissioner Of C/O Srbc Associates & Llp, Income Tax- (International 14Th Floor, The Ruby, Taxation) – 2(2)(1), 29 Senapati Bapat Marg, Vs. Room No. 1722, 17Th Floor, Dadar (W), Air India Building, Mumbai - 400028 Nariman Point, Pan : Aacce8636P Mumbai - 400021 (Appellant) (Respondent) Assessee By : Shri Rajan Vora/Pranay Gandhi (Ars) Revenue By : Shri Ganesh Bare (Dr) Date Of Hearing: 14/10/2020 Date Of Pronouncement: 23/10/2020

For Appellant: Shri Rajan Vora/Pranay Gandhi (ARs)For Respondent: Shri Ganesh Bare (DR)
Section 143

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES “I”, MUMBAI BEFORE SHRI SAKTIJIT DEY (JM) AND SHRI N.K. PRADHAN (AM) Assessment Year: 2013-14 Edenred Pte Limited, The Dy. Commissioner of C/o SRBC Associates & LLP, Income Tax- (International 14th Floor, The Ruby, Taxation) – 2(2)(1), 29 Senapati Bapat Marg, Vs. Room No. 1722, 17th Floor, Dadar (W), Air India Building, Mumbai - 400028 Nariman Point, PAN : AACCE8636P Mumbai - 400021 (Appellant) (Respondent) Assessee by : Shri Rajan Vora/Pranay Gandhi (ARs) Revenue by : Shri Ganesh Bare (DR) Date of Hearing: 14/10/2020 Date of Pronouncement: 23/10/2020 O R D E…

Edenred Pte Ltd, Mumbai vs. DCIT (It) 2(2)(1), Mumbai

In the result, the appeals filed by the assessee are allowed

ITA 507/MUM/2016[2012-13]Status: DisposedITAT Mumbai20 Jul 2020AY 2012-13

Bench: Shri Ravish Sood () & Shri N.K. Pradhan () Assessment Year: 2010-11 & Assessment Year: 2011-12

For Appellant: Mr. RajanVora &For Respondent: Mr. Nishant Samaiya &
Section 143(3)Section 195Section 234ASection 234BSection 234C

…vices offered by the portal would be covered by the expression royalty. We find that subsequently, after considering the decision in Cargo Community Network (P.) Ltd. (supra), Mumbai ITAT in the case of Standard Chartered Bank 11 ITR 721 and Yahoo India Pvt. 140 TTJ 195 held that no part Edenred Pte Ltd. independently use the computer. In the case IMT Labs (India) (P.) Ltd. (supra), the assessee, an Indian company, entered into an agreement with a non-resident American company for securing license of a particular software, which the applicant is entitled to use. The applicant has to pay license fee for usage o…

Edenred Pte Ltd, Mumbai vs. DDIT (It) 3(2), Mumbai

In the result, the appeals filed by the assessee are allowed

ITA 1718/MUM/2014[2010-11]Status: DisposedITAT Mumbai20 Jul 2020AY 2010-11

Bench: Shri Ravish Sood () & Shri N.K. Pradhan () Assessment Year: 2010-11 & Assessment Year: 2011-12

For Appellant: Mr. RajanVora &For Respondent: Mr. Nishant Samaiya &
Section 143(3)Section 195Section 234ASection 234BSection 234C

…vices offered by the portal would be covered by the expression royalty. We find that subsequently, after considering the decision in Cargo Community Network (P.) Ltd. (supra), Mumbai ITAT in the case of Standard Chartered Bank 11 ITR 721 and Yahoo India Pvt. 140 TTJ 195 held that no part Edenred Pte Ltd. independently use the computer. In the case IMT Labs (India) (P.) Ltd. (supra), the assessee, an Indian company, entered into an agreement with a non-resident American company for securing license of a particular software, which the applicant is entitled to use. The applicant has to pay license fee for usage o…

DCIT, Cir-7(1), Kolkata vs. M/S Jet Age Securities Pvt. Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1359/KOL/2015[2011-2012]Status: DisposedITAT Kolkata26 Oct 2018AY 2011-2012

Bench: Hon’Ble Shri M.Balaganesh, Am & Hon’Ble Shri S.S.Viswanethra Ravi, Jm] I.T.A No. 1359/Kol/2015 Assessment Year : 2011-12 Dcit, Circle-7(1), Kolkata -Vs- M/S Jet Age Securities Pvt. Ltd. [Pan: Aabcj 0993 R] (Appellant) (Respondent)

For Appellant: Shri Saurabh Kumar, Addl. CIT Sr. DRFor Respondent: Shri Manoj Kataruka, Advocate
Section 111ASection 143(3)Section 94(7)

…e nature of business profit on which no tax was deductible at source since the same was not chargeable to tax in India in the absence of any PE of Google Ireland Ltd. in India" The above decision, as also decision in the case of Yahoo India Pvt. Ltd Vs Dell (140 TTJ 195) which has been relied upon, is certainly an authority in support of the proposition that the payment by Indian arm of foreign owner of search engine portal, in connection with online advertising services, is not in the nature of royalty under Explanation 2 to Section 9(1 )(vi) -of the Income Tax Act, 1961. In the facts of the appellant's case it…

Atos Informaton Technology Hk Ltd, Mumbai vs. DCIT (It) 1(1)(2), Mumbai

In the result, appeal of assessee is allowed in the manner indicated above

ITA 240/MUM/2016[2012-13]Status: DisposedITAT Mumbai09 Feb 2017AY 2012-13

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Appellant: Shri Kanchan KaushalFor Respondent: Shri Jasbir Chauhan, CIT DR
Section 115ASection 143(3)Section 144C(5)Section 234BSection 271Section 9(1)(vi)

…ndustrial, commercial or scientific equipment under the scope of Royalty. Since, in this case there is no leasing of equipment, the question of invoking clause (iva) does not arise. The said view is also adopted by the decision of Yahoo India P, Ltd. Vs DCIT (140 TTJ 195)(Mum) which has observed as under: "5. .......... A perusal of the relevant portion of the Board circular shows that the legislative intention behind insertion of the said clause is to overcome the situation where no tax at source was being deducted from the payment of lease rent of industrial, commercial and scientific equipment by taking shelt…

Atos Informaton Technology Hk Ltd, Mumbai vs. DCIT (It) 1(1)(2), Mumbai

In the result, appeal of assessee is allowed in the manner indicated above

ITA 239/MUM/2016[2008-09]Status: DisposedITAT Mumbai09 Feb 2017AY 2008-09

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Appellant: Shri Kanchan KaushalFor Respondent: Shri Jasbir Chauhan, CIT DR
Section 115ASection 143(3)Section 144C(5)Section 234BSection 271Section 9(1)(vi)

…ndustrial, commercial or scientific equipment under the scope of Royalty. Since, in this case there is no leasing of equipment, the question of invoking clause (iva) does not arise. The said view is also adopted by the decision of Yahoo India P, Ltd. Vs DCIT (140 TTJ 195)(Mum) which has observed as under: "5. .......... A perusal of the relevant portion of the Board circular shows that the legislative intention behind insertion of the said clause is to overcome the situation where no tax at source was being deducted from the payment of lease rent of industrial, commercial and scientific equipment by taking shelt…

Atos Informaton Technology Hk Ltd, Mumbai vs. DCIT (It) 1(1)(2), Mumbai

In the result, appeal of assessee is allowed in the manner indicated above

ITA 238/MUM/2016[2007-08]Status: DisposedITAT Mumbai09 Feb 2017AY 2007-08

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Appellant: Shri Kanchan KaushalFor Respondent: Shri Jasbir Chauhan, CIT DR
Section 115ASection 143(3)Section 144C(5)Section 234BSection 271Section 9(1)(vi)

…ndustrial, commercial or scientific equipment under the scope of Royalty. Since, in this case there is no leasing of equipment, the question of invoking clause (iva) does not arise. The said view is also adopted by the decision of Yahoo India P, Ltd. Vs DCIT (140 TTJ 195)(Mum) which has observed as under: "5. .......... A perusal of the relevant portion of the Board circular shows that the legislative intention behind insertion of the said clause is to overcome the situation where no tax at source was being deducted from the payment of lease rent of industrial, commercial and scientific equipment by taking shelt…

Atos Informaton Technology Hk Ltd, Mumbai vs. DCIT (It) 1(1)(2), Mumbai

In the result, appeal of assessee is allowed in the manner indicated above

ITA 237/MUM/2016[2006-07]Status: DisposedITAT Mumbai09 Feb 2017AY 2006-07

Bench: Shri Amit Shukla & Shri Ashwani Taneja

For Appellant: Shri Kanchan KaushalFor Respondent: Shri Jasbir Chauhan, CIT DR
Section 115ASection 143(3)Section 144C(5)Section 234BSection 271Section 9(1)(vi)

…ndustrial, commercial or scientific equipment under the scope of Royalty. Since, in this case there is no leasing of equipment, the question of invoking clause (iva) does not arise. The said view is also adopted by the decision of Yahoo India P, Ltd. Vs DCIT (140 TTJ 195)(Mum) which has observed as under: "5. .......... A perusal of the relevant portion of the Board circular shows that the legislative intention behind insertion of the said clause is to overcome the situation where no tax at source was being deducted from the payment of lease rent of industrial, commercial and scientific equipment by taking shelt…