Reopening of assessment cannot rest solely on an audit party's opinion; reassessment under Section 147/148 is impermissible and power of revision shou...
Tested party selection: functional analysis identified the least complex unit as the appropriate tested party, altering the transfer pricing adjustmen...
Receipts from India for satellite transmission services were assessed as "process royalty" and "equipment royalty" under s. 9(1)(vi) and Article 12 of the India-Hong Kong DTAA. The tribunal held that a DTAA, being akin to negotiated legislation, cannot be unilaterally widened by subsequent domestic-law amendments; where the DTAA defines "royalty" more narrowly, the Revenue cannot superimpose the expanded domestic definition to defeat treaty protection. Applying Article 12, the fees for satellite transmission services were held not to constitute "royalty", and by virtue of s. 90(2), the more beneficial treaty provision prevailed, resulting in deletion of the royalty characterization and relief to the assessee - ITAT
Receipts from India for satellite transmission services were assessed as "process royalty" and "equipment royalty" under s. 9(1)(vi) and Article 12 of the India-Hong Kong DTAA. The tribunal held that a DTAA, being akin to negotiated legislation, cannot be unilaterally widened by subsequent domestic-law amendments; where the DTAA defines "royalty" more narrowly, the Revenue cannot superimpose the expanded domestic definition to defeat treaty protection. Applying Article 12, the fees for satellite transmission services were held not to constitute "royalty", and by virtue of s. 90(2), the more beneficial treaty provision prevailed, resulting in deletion of the royalty characterization and relief to the assessee - ITAT
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