TMI Blog2012 (8) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... and close this application leaving it to the applicant to raise its contentions before the Assessing Officer - against assessee. - A.A.R. NO. 939 OF 2010 - - - Dated:- 27-8-2012 - JUSTICE P.K. BALASUBRAMANYAN, J. RULING 1. The applicant, a company incorporated in India seeks advance rulings on the questions raised by it in this application under section 245Q of the Income-tax Act. The application was allowed under section 245R(2) of the Act to give rulings on the following questions: 1. Whether on the facts and circumstances of the case, the amounts payable by the applicant to Sri Lanka Telecom PLC (SLT) under the terms of the SEA-ME-WE 4 Capacity Sales (IRU) Agreement ('the Agreement') would be in the nature of 'fees for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative and/ or question 3 is affirmative, would such payments by the applicant suffer withholding tax under section 195 of the Income Tax Act, 1961 and if yes, at what rate? 2. Even while allowing the application on 15.2.2012 under section 245R(2) of the Act, the application was posted for hearing under section 245R(4) of the Act to 16.7.2012. On 16.7.2012, at the request of the applicant, it was adjourned to 6.8.2012. On that day, at the request of the counsel for the applicant the hearing was adjourned to 13.8.2012. On 13.8.2012, at the persistent request by counsel for the applicant the hearing was adjourned to 16.8.2012. During discussion, it was pointed out that the basic document, namely, the Consortium agreement dated 27.4.2004 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ruling was reserved. The ruling was being prepared. This Authority felt that it would be proper to hear the present application as well before actually pronouncing the ruling in AAR No. 863 of 2012. 5. When the application came up for hearing on 24.8.2012, the basic contract dated 27.3.2004 had not yet been produced. It is to be noticed that SLT from which the applicant derives rights is a member of the Consortium. The rights of SLT spring from that Consortium agreement. It was clear to this Authority that for ruling on the questions raised by the applicant in a manner satisfactory to its conscience, an understanding of the terms and effect of that document was essential. Without understanding, the rights of the grantor, it was felt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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