https://www.taxtmi.com/caselaws?id=451280 Interconnect usage charges received by a non-resident telecom operator were analysed as to whether they constituted royalty under the Income-tax Act. The applicable DTAA definition was held to prevail over the wider domestic expansion of royalty under section 9(1)(vi) where it was more beneficial to the assessee, and treaty protection remained available even in proceedings linked to tax deduction at source or reassessment. The facilities were also noted to be situated outside India, so the receipts could not be taxed on an extra-territorial basis. The royalty addition was deleted and the assessee obtained partial relief. en-us Thu, 11 Jan 2024 00:00:00 +0530 Fri, 22 Mar 2024 08:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=451280 Interconnect usage charges received by a non-resident telecom operator were analysed as to whether they constituted royalty under the Income-tax Act. The applicable DTAA definition was held to prevail over the wider domestic expansion of royalty under section 9(1)(vi) where it was more beneficial to the assessee, and treaty protection remained available even in proceedings linked to tax deduction at source or reassessment. The facilities were also noted to be situated outside India, so the receipts could not be taxed on an extra-territorial basis. The royalty addition was deleted and the assessee obtained partial relief. Case-Laws Income Tax Thu, 11 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=451280