M/S BELGACOM INTERNATIONAL CARRIER SERVICES SA ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(1) INTERNATIONAL TAXATION, BANGALORE
In the result, the appeal filed by assessee stands allowed for statistical purposes
ITA 2884/BANG/2017[2008-09]Status: DisposedITAT Bangalore26 Apr 2022AY 2008-09
Bench: Shri. B.R. Baskaran & Smt. Beena Pillaiit(It)A No. 2884/Bang/2017 Assessment Year : 2008-09 M/S. Belgacom The Deputy International Carrier Commissioner Of Services Sa, Income Tax, Rue Lebeau 4, Circle -1(1), 1000 Brussels, International Taxation, Vs. Belgium. Bangalore. Appellant Respondent : Shri V. Sridharan, Senior Assessee By Advocate : Shri Pradeep Kumar, Cit-Dr & Revenue By Smt. Vandana Sagar, Cit-Dr Date Of Hearing : 16-03-2022 Date Of Pronouncement : 26-04-2022 Order Per Beena Pillaipresent Appeal Is Filed By Non Resident Assessee Against Order Dated 30.10.2017 Passed By Dcit (It), Circle -1(1), Bangalore On Following Grounds Of Appeal: “Being Aggrieved By The Order Of The Learned Dcit, Circle - 1(1), International Taxation, Bengaluru ('A0'), Read With The Order Of The Learned Dispute Resolution Panel ('Drp*), Bengaluru, The Assessee Begs To Prefer The Present Appeal On The Following Grounds: 1. The Learned Ao Erred In Exercising, Jurisdiction U/S 147 Of The Act In The Case Of The Appellant. 2. The Lower Authorities Erred In Holding That A Sum Of Rs. 6,87,13,119/- Received By The Appellant From Its Customer In India Is In The Nature Of 'Royalty' Within The Meaning Of Section 9(1)(Vi) Of The It Act & Accordingly Taxable In India Under The It Act.
For Respondent: Shri V. Sridharan, Senior
Section 143(3)Section 147Section 148Section 234ASection 234BSection 234CSection 9(1)(v)Section 9(1)(vi)Section 9(1)(vii)
House of Lords that the payments received by the taxpayer were trading and not capital receipts.
The following observations in the judgment of Viscount Redcliffe were relied on by the assessee:
"There is no property right in 'know-how' that can be transferred, even in the limited sense that there is a legally protected property interest in a secret process
