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2023 (1) TMI 869 - HC - Income TaxIncome deemed to accrue or arise in India - amount received by the Intelsat Corporation, USA for lease of transponder facility - ITAT held as not chargeable to tax under section 9(1)(vi) read with Article 12(3) of the DTAA between India and USA as royalty - whether ITAT has erred in not appreciating that amount received by Intelsat Corporation, USA represented income by the way of royalty as defined in Explanation 2 read with Explanation 5.6 to Section 9(l)(vi) of the Act as well as Article 12(3) of the India-USA DTAA.- HELD THAT - Admittedly, the questions of law urged in the present appeal are covered by the decision of this Court in assessee s own case 2019 (10) TMI 1541 - DELHI HIGH COURT pertaining to the Assessment Year 2013-14, wherein this Court dismissed an appeal of the Revenue on similar grounds relying on the decisions in M/s Asia Satellite Telecommunications Co. Ltd. 2011 (1) TMI 47 - DELHI HIGH COURT and Director of International Taxation Vs. New Skies Satellite BV, 2016 (2) TMI 415 - DELHI HIGH COURT Appellant states that the Revenue has not accepted the aforesaid decisions and has preferred SLPs against the same. Though the appeals in the aforementioned cases are pending adjudication, yet there is no stay of the said judgments till date. Consequently, in view of the judgments of the Supreme Court in Kunhayammed and Others Vs. State of Kerala And Another. 2000 (7) TMI 67 - SUPREME COURT and Shree Chamundi Mopeds Ltd. Vs. Church of South India Trust Association CSI Cinod Secretariat, Madras 1992 (4) TMI 183 - SUPREME COURT the issues raised in the present appeals are covered by the judgment passed by the learned predecessor Division Bench. No substantial question of law arises.
Issues:
Challenging ITAT orders on taxability of amount received for lease of transponder facility under section 9(1)(vi) of the Income Tax Act, 1961 and India-USA DTAA as royalty. Analysis: The present income tax appeals challenge the ITAT orders for the Assessment Years 2014-15 and 2015-16. The Appellant argues that the ITAT wrongly held that the amount received for the lease of transponder facility by Intelsat Corporation, USA is not taxable under section 9(1)(vi) of the Income Tax Act, 1961 and Article 12(3) of the India-USA DTAA as royalty. The Appellant contends that the ITAT failed to recognize that the amount constitutes income by way of royalty as defined in Explanation 2 and Explanation 5.6 to Section 9(1)(vi) of the Act and Article 12(3) of the DTAA. Additionally, it is argued that the ITAT erred in not acknowledging that the transmission of signals/data through a satellite transponder falls within the definition of the word "process" in the relevant provisions. The Appellant points out that the questions of law raised in the present appeal align with a previous decision of the Court in the assessee's own case for the Assessment Year 2013-14. In that case, the Court dismissed the Revenue's appeal on similar grounds, relying on precedents such as M/s Asia Satellite Telecommunications Co. Ltd. Vs. DIT and Director of International Taxation Vs. New Skies Satellite BV. The Appellant further notes that the Revenue has challenged these decisions by filing Special Leave Petitions (SLPs) before the Supreme Court. Despite the pending adjudication of the appeals in the aforementioned cases, there is no stay on the judgments. Citing the Supreme Court decisions in Kunhayammed Vs. State of Kerala and Shree Chamundi Mopeds Ltd. Vs. Church of South India Trust Association, the Court concludes that the issues raised in the present appeals are already covered by the judgment of the predecessor Division Bench. Consequently, the Court finds that no substantial question of law necessitates consideration in the present appeals, leading to their dismissal.
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