2023 (2) TMI 921

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....: Shri Parikshit Singh, CA For the Assessee : Shri Jatinder Singh, CA ORDER PER ANUBHAV SHARMA, J. M.: 1. The appeal has been preferred by the revenue against the order dated 26.07.2019 of Ld. Commissioner of Income Tax (Appeals), New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. 'FAA') in appeal No. 10140/2018-19 arising out of an appeal before i....

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....come. The case was selected for complete scrutiny and statutory notices were issued. The Id AO observed that the payment received by the Assessee from the customers is on account of use of process involved in the transponders and its amounts to royalty within the meaning of section 9(l)(vi) of the Act and also amounts to royalty within the meaning of respective articles of DTAA. Accordingly, the r....

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.... Act 2012 will not affect Article 12 of the DTAA and the interpretation of the term 'Royalty' given by the Hon'ble Delhi High Court in the case of Asia Satellite will continue to hold the field in the absence of any amendment in DTAA and thereby in holding that receipts of the assessee earned from providing data transmission services do not fall within the term 'Royalty' under ....

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....nder remains with the Assessee. At no point does the Assessee cede control over the satellite to the customers. Logically therefore, since the transponder is a part of satellite that cannot be severed from it, there can be no independent control of the transponders without control of the satellite itself. As with regard to the grounds specifically raised in the appeal in this judgment itself Hon&#....