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2022 (2) TMI 1200 - AT - Income TaxTDS u/s 195 - payment made for transponder charges - royalty u/s 9 (1) (vi) under the relevant double taxation avoidance agreement - Indo-US DTAA - HELD THAT:- As relying on own case [2022 (1) TMI 939 - ITAT MUMBAI] we are of the view that there is no infirmity in the order of The ld CIT (A) in holding that payment by assessee to a foreign company for utilization of transponder centered on a satellite is not in the nature of Royalty in terms of various Article of above Three DTAAs. Coming to the argument of the ld DR that relying on Article 3 (2) of The Treaty, term “process” as defined in Explanation [6] to section 9 (1) (vi) of The Act, should be read in to the treaty as the term “process” used in the treaty Article 12 (3) is not defined in Treaty, hence, meaning assigned domestic law should be used. We find that in Article 12 (3) of India Malaysia Treaty it is “ Secret Formula or process” is the term used and not “ process” , therefore meaning of term “ process” cannot be incorporated in the treaty, even otherwise, because then, the meaning of word “secret “ in treaty would become redundant. CIT (A) has also dealt with this argument of ld AO in his order and then order of ld CIT (A) worded identically in the issues decided by coordinate bench has been upheld. Therefore, this argument also deserves to be dismissed. - Decided against revenue.
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