https://www.taxtmi.com/caselaws?id=790986 Payments for International Private Leased Circuit bandwidth and telecommunication facilities made to a non-resident were analysed under the royalty definition in section 9(1)(vi) of the Income-tax Act, 1961. The note states that Explanations 4 to 6, inserted by the Finance Act, 2012, enlarged the charging provision and operated prospectively from 01.04.2012, so they could not govern earlier assessment years. On that basis, such service payments were not treated as royalty for the relevant period; in the absence of taxability in India or a taxable business connection or permanent establishment, no withholding obligation under section 195 arose, and consequential proceedings under sections 201, 201(1A) and 40(a)(i) were unsustainable. en-us Thu, 30 Apr 2026 00:00:00 +0530 Mon, 04 May 2026 07:57:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790986 Payments for International Private Leased Circuit bandwidth and telecommunication facilities made to a non-resident were analysed under the royalty definition in section 9(1)(vi) of the Income-tax Act, 1961. The note states that Explanations 4 to 6, inserted by the Finance Act, 2012, enlarged the charging provision and operated prospectively from 01.04.2012, so they could not govern earlier assessment years. On that basis, such service payments were not treated as royalty for the relevant period; in the absence of taxability in India or a taxable business connection or permanent establishment, no withholding obligation under section 195 arose, and consequential proceedings under sections 201, 201(1A) and 40(a)(i) were unsustainable. Case-Laws Income Tax Thu, 30 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790986