TMI Blog2021 (12) TMI 1369X X X X Extracts X X X X X X X X Extracts X X X X ..... - ANDHRA PRADESH HIGH COURT ] - Their lordships have upheld the departmental stand pertaining to applicability of section 194H involving identical prepaid recharge coupons issued to the distributors. It further appears that the said assessee was the assessee s group concern only. We thus adopt their lordships foregoing detailed reasoning mutatis mutandis and reject the instant former substantive grievance. As the legislature has itself incorporated section 201(1) first proviso in the Act vide Finance Act, 2012 w.e.f. 1.7.2012 that an assessee shall not be treated to be the assessee in default for having not deducted TDS provided it furnishes the accountant s certificate qua its payee to have furnished the latter return of income u/s. 139 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s action collecting royalty qua spectrum (supra). We observe that the said stipulation between assessee's payee(s) and Govt. to this effect does not in any way mean that it itself has made any royalty payment to very payee(s) for utilizing/uplinking the spectrum in question. The Revenue s last argument invoking TDS mechanism going by the assessee suo moto deduction in Assessment Years 2015-16 and 2016-17 (supra) does not ipso facto attract the impugned statutory provisions. We lastly conclude that the specific definition prescribed by the legislature in the Act regarding payment of royalty would override the agreements and corresponding terminology employed between the Govt. of India, Telecom Department with the corresponding spectr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sought to buttress the point that the assessee has sold its coupons to the distributor giving credit to them regarding latter s inbuilt profit element than commission attracting TDS deduction u/s. 194H of the Act. We find no merit in the assessee's instant former substantive grievance since the CIT(A) has duly taken note of hon ble jurisdictional high court decision in M/s. Vodafone Essar South Ltd. Vs. DCIT in ITTA No.291 of 2013 Dt.17.07.2013. Their lordships have upheld the departmental stand pertaining to applicability of section 194H involving identical prepaid recharge coupons issued to the distributors. It further appears that the said assessee was the assessee s group concern only. We thus adopt their lordships foregoing detai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicability of the impugned royalty provision 9(1)(vi) of the Act. He invited our attention to the historical background of spectrum dyamism as well as the fact that the Department of Telecommunications, Ministry of Communications, Govt. of India also uses the very term royalty charges while receiving such payment from the concerned spectrum allottees. 6. We find no merit in the Revenue s instant stand. It is made clear that section194J (1)(c) of the Act stipulating TDS deduction on royalty makes it clear in Explanation (ba) that royalty shall have the same meaning as in Explanation 2 clause (i) to (vi) of sub-section (1) of section 9 of the Act. The said latter provision defines royalty as follows : Section 9(1)(vi) - Expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very order or in the CIT(A) s findings as to whether the assessee's impugned payments made to the spectrum holder(s); as the case may be, satisfies any of the foregoing clauses defining royalty or not. All the assessees have availed is a standard facility without any customisation. The Revenue s case is that the assessee fails to dispute the Govt. of India s action collecting royalty qua spectrum (supra). We observe that the said stipulation between assessee's payee(s) and Govt. to this effect does not in any way mean that it itself has made any royalty payment to very payee(s) for utilizing/uplinking the spectrum in question. We thus rely on the Tribunal s co-ordinate bench order (supra) that such interlinking of telecom services f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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