Satellite transmission services don't constitute royalty under India-Netherlands tax treaty, petition dismissed following established precedent

Delhi HC dismissed writ petition regarding whether satellite transmission services constitute 'royalty' under India-Netherlands DTAA. Court relied on Division Bench ruling in New Skies Satellite case, holding the issue is settled with no question of law arising. Court noted SC appeal against New Skies decision is pending, and both Revenue and Assessee are bound by the final SC decision on this legal question.

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The Delhi High Court, in an order by Justices S. Ravindra Bhat and Prateek Jalan, addressed whether satellite transmission services constitute 'royalty' under the India-Netherlands DTAA. The Court relied on the Division Bench ruling in Commissioner of Income Tax - International Taxation-2 vs. New Skies Satellite B.V. [ITA 416/2018], holding that the issue is settled and "no question of law arises." Consequently, the writ petition was dismissed. The Court noted that a Supreme Court appeal against the New Skies decision is pending, and both Revenue and Assessee are "bound by the decision on the question of law, to be decided finally" by the Supreme Court.

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