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2022 (1) TMI 939 - AT - Income TaxTDS u/s 195 - payments made to Intelsat Corporation, USA/IGSM, UK/MEASAT, Malaysia for transponder charges - Whether payment did not constitute royalty u/s 9(l)(vi) of the Act or under the relevant DTAA? - whether CIT (A) has erred in not taking into account that the payments made by the assessee to Intelsat for transponder charges are specifically covered by Explanation 6 to section 9(l)(vi) as being included in the expression 'process' and hence fall under definition of royalty as per Explanation 2 to section 9(l)(vi) of the Act? - HELD THAT:- As decided in VIACOM 18 MEDIA PVT. LTD [2018 (7) TMI 2248 - ITAT MUMBAI] relying on G. E. Technology Centre Pvt. Ltd. [2010 (9) TMI 7 - SUPREME COURT] held that transponder charges are not in the nature of ‘Royalty income in the hands of recipients despite amendment to section 9(1)(vi of the Act. In view of binding precedent of the Tribunal and Hon’ble High Court followed by the Ld.CIT(A) in respective impugned orders, we do not find any error or infirmity in the impugned orders passed by the Ld.CIT(A) on the issue in dispute relevant to the orders of Assessing Officer u/s 195(2) of the Act. Accordingly, we uphold the finding of the Ld. CIT(A) in impugned orders - Decided in favour of assessee.
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