9911796707
TMI Blog2025 (1) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... Austria [assessee-respondent] against the re-assessment order passed u/s. 143(3) r.w.s. 147 of the Income-tax Act, 1961 [the Act] dated 11.5.2022 by the ACIT was allowed. 2. Therefore, the AO is aggrieved and has preferred this appeal as per substantial questions of law raised in the grounds of appeal as under:- "1. Whether on the facts and in the circumstances of the case and in law, the CIT(A)-12 was right in ignoring the fact that the assessee had in accordance with the agreement entered into by it provided carriage and connectivity services to M/s, Vodafone Idea Ltd. and the payments made therein were taxable as per section 9 of the Income Tax Act? 2. Whether on the facts and circumstances of the case and in law, the CIT(A)- 12 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2021, in response to which the assessee filed its return of income on 26.3.2021. The reasons were disclosed to the assessee which were objected to on 1.4.2021 and disposed on 24.12.2021. Notice u/s. 142(1) of the Act was also issued which was responded by the assessee and further a show cause notice was also issued that, why the amounts received from Vodafone South Ltd. and other entities should not be treated as royalty and brought to tax in India. 4. The assessee replied that these are interconnect service charges which are standard facilities, does not require any manpower or human intervention and therefore cannot be taxed as royalty. Assessee further submitted tax residency certificate, copies of agreement and stated that it is not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perused the orders of ld. lower authorities. We find that the only issue in this case is, whether interconnect service charges paid by Vodafone and Bharti Airtel amounting to Rs.11,47,52,968 are chargeable to tax in India as per the Income-tax Act or DTAA. We find that the ld. CIT(A) has categorically relied upon the decision of Hon'ble Karnataka High Court in the case of payee and Hon'ble Supreme Court has dismissed the SLP also. Honourable Karnataka High Court following the above judgments has held so in series of judgements such as Deputy Commissioner of Income Tax V. M/S Belgacom International Carrier Services SA Belgium, The Deputy Commissioner Of Income Tax V. M/s. M.I. Limited, The Deputy Commissioner Of Income Tax V. M/s. Maxis Int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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