TMI Blog2023 (2) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... ld not be categorized as process stands settled. As in case of Director of Income Tax Vs. New Skies Satellite [ 2016 (2) TMI 415 - DELHI HIGH COURT ] settled the controversy holding that all that the customers gets through the agreement with the Assessee is mere access to a broadband width available in the transponder. The control over the parts of the satellite and naturally transponder remains with the Assessee. At no point does the Assessee cede control over the satellite to the customers. Logically therefore, since the transponder is a part of satellite that cannot be severed from it, there can be no independent control of the transponders without control of the satellite itself. As concluded by HC that the Finance Act, 2012 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nternational Taxation, New Delhi (hereinafter referred as the Ld. AO). 2. Facts in brief are that the Assessee is a company incorporated under the laws of Thailand, and is engaged in the business of providing digital broadcast service through its transponders to its customers, both residents in India as well as non-residents. It renders these services to its customers through the satellite THAICOM-7, which has a footprint over a wide geographical region including India. It had disclosed receipts of Rs. 9,46,77,053/- from two customers in India while declaring Nil total income. The case was selected for complete scrutiny and statutory notices were issued. The Id AO observed that the payment received by the Assessee from the customers is o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the income earned by the assessee from providing digital broadcasting services through its transponders to customers in India was not taxable in India under the relevant DTAA. 3. Heard and perused the records. 4. The issue with regard to functions performed by transponders could not be categorized as process stands settled. The Hon'ble Delhi High Court in the judgment dated 08.12.2016 in case of Director of Income Tax Vs. New Skies Satellite B.V. in ITA 473/2014 settled the controversy holding that all that the customers gets through the agreement with the Assessee is mere access to a broadband width available in the transponder. The control over the parts of the satellite and naturally transponder remains with the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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