Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2009 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (12) TMI 586 - AT - Income TaxDTAA - Addition - Scrutiny - Revision - TDS - Royalty or fees for technical service - A look at the SB decision clearly brings out that, this was not the clinching reason for it to hold that the assessee there, was hiring a 'process' by taking up a transponder in a satellite, bringing the payment made thereon, within the ambit of the term 'royalty' as defined in sec.9(1)(vi) of the Act - Assessee did not bring on record anything to show that M/s. Menon Ltd. was just passing on the money to the owner of satellite Ekran - Since the payment is considered as 'royalty', the other limbs of the argument, whether it was technical services, or whether a PE was necessary, whether such receipts would be taxable in the hands of the recipient under Indian Income-tax Act becomes irrelevant The rigour of sec.40(a)(i) of the Act would not apply to it since in view of the DTA with the concerned countries, non-resident Indian cannot be worse off from a resident tax payer in relation to a transaction entered by the latter with anybody in India - Before ruling that assessee can take advantage of such articles in relevant DTTs it is necessary to see whether application thereof can be made use of by the assessee after considering all related articles in such treaties as also the meaning of 'royalty' as per the DTTs - Since these aspects have never been examined by the lower authorities - Held that - the payment were royalty in nature - matter remanded back to AO to examine that it was saved from the rigour of sec.40(a)(i) on account of relevant articles in the respective DTTs.
|