2012 (1) TMI 311

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....e company are not in the nature of royalty under Article 12 of the Double Taxation Avoidance Agreement between India and USA. 2. The appellant craves to add, amend, modify or alter any grounds of appeal at the time or before the hearing of the appeal." 2. The assessee, earlier known as PanAmSat, is a company incorporated under the laws of USA having its registered office at 3400 International Drive NW, Washington DC, USA and is a tax resident of USA. During the year the assessee has derived income from providing telecommunication services to various customers in India as well as outside India. The assessee was the owner and operator of global network of telecommunication satellites located in outer space and was engaged in active busines....

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.... revenue is computed at  Rs. 1,86,32,620/- on which tax has been computed at  Rs. 18,63,262/-. 3. The tax liability of the assessee has been shown in the table by the Assessing Officer which is reproduced:- Particulars Total Revenue Attributed Revenue Tax Indian customers 349,816,199 349,816,199 34,981,619 Global Customers (Attribution @ 90%) 76,624,662 68,962,195 6,896,219 Global Customers (Attribution @ 50%) 145,744,570 72,872,285 7,287,228 Global Customers (Attribution @ 5%) 372,652,401 18,632,620 1,863,262 Total income   510,283,300 51,028,330 4. The assessment so made was challenged before the CIT (A) who has decided the appeal filed by the assessee by the impugned order dated 29th July, 2011. L....

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....ure namely that the assessee has received payments from persons residents in India. However, the receipts have been taxed u/s 9(1)(vii), Explanation 2, Clause (vi) thereunder. The decision in the case of Asia Satellite Telecommunications Company Limited is to the contrary and in favour of the assessee. It is also a matter of fact on record that the assessee is a tax resident of USA and, therefore, the provisions contained in the DTAA are applicable. However, we are of the view that we need not go into the provisions of the DTAA because of the provision contained in Section 90(2) of the Act. This provision provides that where the Central Government has entered into an agreement with the Government of any country outside India under sub-secti....