2019 (4) TMI 1426

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....to bring the receipts as royalty in India. 2. Brief facts of the case are that the Intelsat Corporation (IC)(assessee) is a tax resident of USA with its registered office in Washington. Assessee qualifies as a tax resident of USA in terms of Article 4 of the Double Taxation Avoidance Agreement (DTAA) and the provisions of such DTAA are applicable to the case of the assessee. 3. Assessee is the owner and operator of global network of telecommunication satellites located in outer space and is engaged in active business of transmitting telecommunication signals to/from its customers and various TV channels, NICNET and Internet Service providers are using the satellites for various purposes including telecommunication, broadcasting etc; tha....

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.... Asia Satellite , 332 ITR 340 (Del), held that the payments received by the assessee are taxable in India as royalty both as per the provisions of the Act as well as the tax treaty and at the same time payments made by way of non resident were also considered as deemed to accrue or arise in India as per the provisions of Section 9(1)(vi)(c) of the Act and Article 12(7)(b) of the tax treaty and are taxable @ 10% of the gross amount. On this premise, learned AO summarized the following amounts to tax: Particulars Total Revenue (Rs.) Attributed Revenue (Rs.) Tax (Rs.) Indian Customers (100%) 75,61,01,260/- 75,61,01,260/- 7,56,10,126/- Global Customers (Attribution @ 90%) 12,36,83,972/- 11,13,15,575/- 1,11,31,557/- Global ....

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....he above batch of appeals as could be culled out from para 10 of the said order. In view of the similarity of the facts and the nature of arguments, we do not deem it necessary to reiterate all the contentions of the parties here again. 8. It could be seen from the order dated 26.2.2018 in ITA No.2234/Del/2009 and batch, the contention of the assessee is that the impugned receipts cannot be held to be royalty and consequently cannot be brought to tax in India, so upheld by a coordinate bench of this Tribunal while referring to the decisions of the Hon'ble jurisdictional High Court in the case of Asia Satellite (supra) and New Skies Satellite BV (supra). It is not the case of the revenue that any change of fundamental facts happened for th....