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2012 (1) TMI 311 - AT - Income TaxRoyalty and Fees for Technical Services u/s 9 - Double Taxation Relief u/s 90 - Assessee has derived income from providing telecommunication services to various customers in India as well as outside India. The AO treated income from Indian customers as royalty and held that such payments are taxable. HELD THAT:- Facts are similar in the own case of M/S INTELSAT CORPORATION, C/O S.R. BATLIBOI & CO. VERSUS ASSTT. DIRECTOR OF INCOME-TAX, CIRCLE-1 (2), NEW DELHI [2011 (3) TMI 1707 - ITAT DELHI], where it was held that, assessee is a tax resident of USA and, therefore, the provisions contained in the DTAA are applicable. However, there is no need to go into the provisions of the DTAA because of the provision contained in Section 90(2) of the Act. This provision provides that where the Central Government has entered into an agreement with the Government of any country outside India under sub-section (1) for granting relief of tax, or as the case may be, avoidance of double taxation, then, in relation to the assessee to whom such agreement applies, the provisions of this Act shall applied to the extent they are more beneficial to that assessee. It has to be granted the benefit of the Act under which no liability to tax can be fastened on the assessee. This decision was further confirmed by Hon'ble Delhi High Court in the case of DIT INTERNATIONAL TAXATION VERSUS INTELSAT CORPORATION [2011 (8) TMI 1248 - DELHI HIGH COURT]. Thus, income received from the activities undertaken by the respondent/assessee would not be exigible to tax in India - Decision in favour of Assessee.
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