9911796707
TMI Blog2024 (3) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment Years are 2009-10 and 2010-11. 2. Common issues are raised in these appeals and the Cos, hence they were heard together and are being disposed off by this consolidated order. 3. Assessee is a foreign company engaged in the business of providing telecommunication services. For the Assessment Years 2009-10 and 2010- 11, assessee received payment of Rs. 5,48,13,709/- and Rs. 14,69,97,294/- respectively. The payments were received by the assessee from M/s. Vodafone South Ltd., (VSL) towards interconnect usage charges. The proceedings under section 201 of the Act were initiated in the case of VSL for the Financial Years 2009-10 to 2011-12 in respect of non-deduction of tax at source on payments made to its Non-Resident Telecom Operato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 were not liable to be taxed in India under section 9(1)(vi) of the Act nor under the relevant DTAA. The CIT(A) rejected the assessee's contentions on the legal grounds and held that reopening of assessment is valid. The CIT(A) on merits allowed the appeal of the assessee by following the ratio of the judgment of the Hon'ble jurisdictional High Court in the case of VSL [now known as Vodafone Idea Ltd., (VIL)] reported in (2023) 152 taxmann.com 575 (Karnataka). 6. Aggrieved by the orders of the CIT(A) for the Assessment Years 2009-10 and 2010-11, Revenue has filed the present appeals before the Tribunal. The assessee has also filed CO as against the CIT(A)'s orders rejecting the assessee's legal contention that reassessment order passed u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not Royalty/FTS, the same cannot be brought to tax in the hands of the assessee under section 9 of the Act and the relevant DTAA. The relevant finding of the Hon'ble jurisdictional High Court has been elaborately extracted in the impugned order of the CIT(A), therefore the same is not reiterated here. In view of the aforesaid judgment of the Hon'ble High Court in the case of VSL (supra), we hold that CIT(A) is justified in deciding the issue on merits in favour of assessee and deleting the additions made by the AO for Assessment Years 2009-10 and 2010-11. It is ordered accordingly. 9. Since we have decided the issue on merits and dismiss the Department's appeals, the COs filed by the assessee are rendered infructuous and the same are d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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