TaxTMI 
TaxTMI 
2022 (2) TMI 1239
X X X X Extracts X X X X
X X X X Extracts X X X X
.... grounds have been raised in same set of facts and circumstances and therefore both these appeals were heard together and disposed off by way of this consolidated order for convenience and avoid repetition of the facts. As common grounds have been raised except difference of transaction value, therefore, grounds of ITA No. 1177/M/2021 are only reproduced for brevity: 1. "Whether on the facts and circumstances of the case and in law, the CIT(A) has erred in holding that the assessee was not liable to deduct tax at source u/s 195 of the Act on payments made to Intelsat Corporation, USA/IGSM, UK/MEASAT, Malaysia for transponder charges on the ground that payment did not constitute royalty u/s 9(1)(vi) of the Act or under the relevant DTAA? ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....atellite System, Malaysia (MEASAT) 2.1 The assessee applied for an order u/s 195(2) of the Act, 1961 (in short 'the Act') for nil withholding tax certificate on the payment of transponder services made to the above service providers. The Assessing Officer rejected the application of the assessee holding that payment falls under the definition of "Royalty" both under the provisions of the Act as well as under DTAA between India and relevant country and therefore, payments are liable for withholding tax. The relevant finding of the Ld. Assessing Officer is reproduced as under : "The submission of the applicant have been perused. The Finance Act 2012 has inserted a new explanation to section 9(1)(vi) which defines the term royalty'. As ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ee to withhold the tax as per provisions of the Act. 3. On further appeal by the assessee, the Ld. CIT(A) followed the decision of Hon'ble Bombay High Court in the case of Neo Sports Broadcast Pvt. Ltd. (ITA No. 1487 of 2018) wherein it is held that transponder charges paid to nonresident is not taxable as "royalty". While doing so the Hon'ble Bombay High Court has relied on the Hon'ble Delhi High Court in the case of Asia Satellite Communication Company Ltd. (2011) 332 ITR 340 and Skies Satellite BV (2016) 382 ITR 114. The Ld. CIT(A) has also considered the DTAA in the case of other two parties and held that definition of the royalty in those treaties are also similar to the definition of Royalty in treaty between India and USA and thus c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....In respect of the three above listed entities, the Tribunal (supra) has held as under: "9. We have heard the rival submissions of the parties on the issue in dispute and perused the relevant material on record. In the appeal for assessment year 2015-16, the Ld. CIT(A) has considered the facts of one of the parties in whose case, the assessee sought determination of sum chargeable under the Act and consequential deduction of tax at source u/s 195(2) of the Act. The Ld. CIT(A) referred to master agreement between the assessee and Intelsat Corporation, USA to highlight the services of transponding facility provided by the party. The Ld. CIT(A) has noted that while passing the order dated 28/03/2014, 04/02/2015 and 10/02/2015 in assessee'....