TMI Blog2016 (9) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... produced by the assessee were digitally broadcast through the satellite of the foreign party. The foreign party appears to be in the business of broadcasting television programmes through its satellite. The assessee who is a producer of the tele-programmes provides the contents in the form of tapes. The foreign party broadcasts the contents through its satellite and in lieu of such broadcasting, foreign party was paid various sums from time to time. We are, as such, unable to agree with Mr.Agarwal that the payment made by the assessee partakes the character of royalty. - Decided in favour of assessee - ITA NO.734 OF 2008 - - - Dated:- 29-7-2016 - GIRISH CHANDRA GUPTA AND ARINDAM SINHA, JJ. FOR THE APPELLANT : Mr.M.P.Agarwal,Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertaining to the same assessment years preferred by the assessee. The learned Tribunal dismissed the appeals preferred by the revenue. Since the appeals themselves were dismissed, there was no occasion for the learned Tribunal to deal with the Cross-objection. They were also dismissed. The aggrieved revenue has come up in appeal. On 31st October, 2008 when the appeal was admitted, the following questions were formulated : 1. Whether on the facts and in the circumstances of the case the ld. Income Tax Appellate Tribunal was justified in holding that the payments made by the assessee to the foreign company, Shin Satellite Company of Thailand, are in the nature of the royalty within the meaning of Article 12(3) of the DTTA between In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Double Taxation Agreement between India and Thailand ? The facts and circumstances of the case were summarised by the CIT (A) in disposing of the appeal preferred by the assessee, as follows . The brief facts of the case are that the appellant a Public Ltd. Company is engaged in the operation of Satellite T. V. Channel namely ATN which is a Free to Air Channel. It has entered into an agreement with Thailand Company called M/s. Shin Satellite Public Ltd. Co. (SSA) for hiring of transponder for transmitting the TV programmes through satellite. M/s. SSA was providing uplinking facilities from their Earth Station based in Bangkok, Thailand. The cable operators downlink the programs from the transponder and exhibit the same to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round relating to legality of combined order for three years same is not considered as appellant has been allowed relief on merit. In an appeal by the revenue, the learned Tribunal concurred with the views of the CIT(A). An additional point raised on behalf of the revenue that the payment was on account of the use of industrial or commercial or scientific equipments was also rejected by opining as follows : 13. The last contention raised by the ld.DR is that the service provided by the Thailand company is tantamount to the use of industrial, commercial or scientific equipment. A perusal of the Digital Channel Service Agreement with M/s.SSA shows that, as per Appendix B which defines Digital Broadcast Service to be rendered to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s follows : 3 .The term royalties as used in this article means payments of any kind received as a consideration for the alienation or the use of, or the right to use, any copyright of literary, artistic or scientific work (including cinematograph films, phonographic records and films or tapes for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. Mr.Agarwal laid stress to the words including cinematograph films .or television broadcasting . He submitted that any payment made with respect to the cinemat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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