Satellite transmission services do not constitute royalty under India-Netherlands tax treaty, appeal dismissed pending Supreme Court decision

The Delhi HC Division Bench dismissed an appeal regarding whether satellite transmission services constitute "royalty" under the India-Netherlands DTAA. The Court relied on its previous decision in Commissioner of Income Tax vs. New Skies Satellite B.V., holding that no question of law arises. The Court noted that an appeal against the New Skies decision is pending before the SC, and both parties remain bound by the SC's final determination on this legal issue.

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The Delhi High Court, through a Division Bench comprising Hon'ble Justices Manmohan and Dinesh Kumar Sharma, addressed whether satellite transmission services constitute "royalty" under the India-Netherlands Double Taxation Avoidance Agreement (DTAA). The Court relied on its prior ruling in *The Commissioner of Income Tax - International Taxation -2 vs. New Skies Satellite B.V.*, ITA 416/2018 (11.04.2018), which settled this issue. Consequently, the Court held that "no question of law arises" and dismissed the appeal. It further noted that a Supreme Court appeal against the *New Skies* decision is pending, and both parties are bound by the Supreme Court's final determination on this legal question.

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