2019 (11) TMI 1849 - HC - Income Tax

Revenue appeal dismissed: payments by Indian residents to nonresident software suppliers don't raise question of law on TDS under s.195/s.9(1)(vi)

THE COMMISSIONER OF INCOME TAX – INTERNATIONAL TAXATION -2 Versus INTELSAT CORPORATION

The HC dismissed the Revenue's appeal against the ITAT order for AY 2013-14, upholding that payments by Indian residents to non-resident foreign software ... Royalty receipts - TDS u/s 195 - Payments for the use of computer software amounts to 'royalty' - payment by the concerned persons resident in India to non-resident, foreign software suppliers - Applicability of the doctrine of first sale/principle of exhaustion - Applicability of retrospective amendments to Section 9(1)(vi) - Interpretation of Treaties and OECD Commentary - Whether constitutes as taxable income deemed to accrue in India u/s 9(1)(vi) - income deemed to accrue or arise in India HELD THAT:- The present appeal is directed against the order [2019 (6) TMI 1689 - ITAT DELHI] in respect of the assessment year 2013- 14. The Tribunal has placed reliance on the decisions of this Court 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] Since the issues raised by the Revenue are squarely covered by the aforesaid decisions of this Court, in our view, no question of law arises for our consideration. Appeal against the ITAT order dated 20.06.2019 in ITA No. 5534/DEL/2016 for assessment year 2013-14. The Tribunal relied on this Court's decisions in M/s Asia Satellite Telecommunications Co. Ltd. v. DIT (2011) 332 ITR 340 (Del) and Director of International Taxation v. New Skies Satellite BV (2016) 382 ITR 114 (Del). As the issues raised by the Revenue were 'squarely covered by the aforesaid decisions of this Court,' the court held that 'no question of law arises for our consideration.' Appeal dismissed.