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2016 (11) TMI 1528 - AT - Income TaxIncome accrued in India - Addition of royalty - amount paid to M/s Intelsat Inter Corporation, USA under the transponder service agreement for the transponder service charges paid by the assessee to Intelsat under the said agreement - according to the assessee, it was neither ‘royalty’ nor Fee for Technical Services (FTS) - tds liability - Held that:- Hon’ble Delhi High Court in the case of payee, viz. M/s Intelsat Corporation, USA [2011 (8) TMI 1248 - DELHI HIGH COURT] has categorically held that payment received by Intelsat Corporation is not taxable in India under the provisions of Indo US DTAA. Thus, in the case of payee, it has been categorically held that said payment is not taxable, then the assessee is not obliged to deduct TDS, therefore, the impugned proceedings u/s 195 deserves to be quashed. Thus, after taking into account all the facts and circumstances of the case, we find that the issue stands squarely covered by the decision of the Mumbai Bench of the Tribunal in assessee’s own case and, therefore, the issue raised in the appeal before us stands allowed in terms of earlier order of the Tribunal which shall apply mutatis mutandis on the issue raised in this appeal before us. Accordingly we hold that the assessee was not liable to deduct tax at source. - Decided in favour of assessee. Interest u/s 244A on refund of extra TDS deposit u/s 195 - Held that:- This issue has been sent by the Tribunal in its aforesaid order back to the file of the AO to be decided after considering latest CBDT circular No.11 of 2016 dated 26th April, 2016. Thus, we direct the AO to follow earlier order of the Tribunal on this issue. This issue should be decided afresh by the AO accordingly.
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