TMI Blog2024 (3) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... the non-resident is Royalty/FTS and the income is deemed to accrue or arise under section 9 - However, the order of the Tribunal in the case of VSL was reversed by the Hon ble jurisdictional High Court in the case relied on by the CIT(A) Since the Hon ble jurisdictional High Court has categorically held that the payment made by the VSL 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 [ 2023 (7) TMI 1164 - KARN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act, the said charges were considered as Royalty / Fees for Technical Services (FTS) as per the Act and the respective Double Taxation Avoidance Agreement (DTAA). 4. Since the income was deemed to have been accrue / arise under section 9 of the Act in the hands of the assessee company amounting to Rs. 5,48,13,709/- and Rs. 14,68,97,294/- which has not been offered to tax, the AO issued notice under section 148 of the Act for Assessment Years 2009-10 and 2010-11. In response to the notices issued under section 142(1) of the Act, some were responded to by assessee. However, since assessee did not respond to several notices, the assessments were completed under section 147 r.w.s. 144 of the Act, vide orders dated 26.12.2017 and 24.12.2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee by the judgment of the Hon ble High Court referred supra. It was submitted by the learned AR that if the issue is decided on merits, the assessee s COs may be dismissed as infructuous. 7. The learned DR was unable to controvert learned AR s submission that issue on merits is covered in favour of the assessee by the judgment of the Hon ble High Court in the case of VSL (supra). 8. We have heard the rival submissions and perused the material on record. In the instant case, the assessments were reopened for Assessment Years 2009-10 and 2010-11 on the basis of the orders passed under section 201 of the Act in the case of the payer viz., VSL. The Tribunal in the case of M/s. VSL (the payer) in the proceedings under section 201 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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