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2023 (8) TMI 1375 - AT - Income TaxIncome taxable in India - taxability of IUC[Interconnect Usage Charge] u/s 9(1)(vi) and 9(1)(vii) and under the article 13 of DTAA - addition as royalty receipts/ FTS - Assessee is a telecom company incorporated and a tax resident of Spain as engaged in the business of providing telecommunications services, interconnection services, internet services, etc - HELD THAT:- Tribunal in Year 2010-11 [2023 (9) TMI 280 - ITAT BANGALORE] has passed a detailed order after considering several judicial precedents including the case of Vodafone [2023 (7) TMI 1164 - KARNATAKA HIGH COURT] and Vodafone South Ltd. [2015 (1) TMI 1018 - ITAT BANGALORE] which have held that interconnectivity charges are not taxable as royalty and FTS respectively. As the contention of learned DR placing reliance on the section 5 of the Act is rejected. Thus we hold that the IUC charges do not qualify as royalty or FTS and hence is not taxable in India. Decided in favour of assessee.
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