Back
IN THE HIGH COURT OF DELHI AT NEW DELHI
Rajiv Shakdher, Girish Kathpalia, JJ.
Commissioner of Income Tax (international Taxation)-2 – Appellant
Versus
Intelsat Us Llc – Respondent
ITA 455 of 2023
Decided On : 17-08-2023
Revenue - Income Tax - Satellite Transponder Facilities - Legal provisions concerning additions made by the assessing officer vis-a-vis payment received for rendering satellite transponder facilities by the respondent/assessee to its customers in India
Fact of the Case:
The appeal concerns the Assessment Year 2019-20. The appellant/revenue seeks to challenge the order passed by the Income Tax Appellate Tribunal, which is covered by a previous decision of the Court concerning AY 2018-19.
Finding of the Court:
The Court closed the appeal based on the decisions rendered by the coordinate benches in similar cases, pending adjudication of the appellant/revenue's Special Leave Petitions against those decisions.
Issues: The main issue concerns the additions made by the assessing officer vis-a-vis payment received for rendering satellite transponder facilities by the respondent/assessee to its customers in India.
Ratio Decidendi: The Court's decision was influenced by the decisions rendered by the coordinate benches in similar cases and the pending adjudication of the appellant/revenue's Special Leave Petitions against those decisions.
Final Decision: The appeal of the appellant/revenue is closed, and the parties will be bound by the decision rendered in the pending Special Leave Petitions if the appellant/revenue succeeds in those appeals.
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
1. This appeal concerns Assessment Year (AY) 2019-20.
2. Via this appeal, the appellant/revenue seeks to assail the order dated 31.01.2023 passed by the Income Tax Appellate Tribunal [in short, "Tribunal"].
3. Mr Sanjay Kumar, learned senior standing counsel, who appears on behalf of appellant/revenue, fairly informs us that the issue raised in the present appeal is covered by the decision of this Court dated 24.07.2023 rendered in ITA No. 395/2023, titled Commissioner of Income Tax (International Taxation)-2 vs. Intelsat US LLC (Erstwhile Intelsat Corporation).
4. The said decision concerns AY 2018-19. While disposing the appeal, we had made the following observations:
"7. Broadly, the appeal concerns the additions made by the assessing officer vis-a-vis payment received for rendering satellite transponder facilities by the respondent/assessee to its customers in India.
8. We are told by Mr Sanjay Kumar, learned senior standing counsel, who appears on behalf of the appellant/revenue, that the issue raised in the present appeal is covered by the decisions rendered by the coordinate benches in M/s Asia Satellite Telecommunications Co. Ltd. v. DIT (2011) 322 ITR 340 (Del) and Director of International Taxation v. New Skies Satellite BV (2016) 382 ITR 114 (Del).
9. We are told that the appellant/revenue has preferred Special Leave Petition(s) against the said decisions, which are pending adjudication.
10. Accordingly, the appeal of the appellant/revenue is closed, following the abovementioned decisions rendered by the coordinate benches".
5. Accordingly, in this case as well, the appeal is closed.
6. In case, the appellant/revenue were to succeed in their appeals pending in matters of M/s Asia Satellite Telecommunications Co. Ltd. v. DIT (2011) 322 ITR 340 (Del) and Director of International Taxation v. New Skies Satellite BV (2016) 382 ITR 114 (Del), parties will be bound by the decision rendered in said Special Leave Petitions.
The main legal point established in the judgment is that when an issue is covered by a judgment rendered by a coordinate bench of the court and affirmed by the Supreme Court, no substantial question ....
The court found that the issue was covered by previous judgments and no substantial question of law arose for consideration.
The interpretation of Section 9(1)(vi) of the Income Tax Act, 1961 and Article 12(3) of the India-USA DTAA regarding the taxability of amount received for lease of transponder facility as royalty.
The court's decision was influenced by the applicability of previous judgments and the absence of a substantial question of law for consideration.
Income received for leasing transponder facilities is not chargeable to tax as royalty under the Income Tax Act and applicable DTAA, based on established judicial precedent.
The court's decision emphasized that no substantial question of law arose for consideration, leading to the dismissal of the appeals.
The classification of income as 'royalty' under the India-Netherlands DTAA remains subject to the precedent set in a related judgment, unaffected by pending appeals.
The absence of substantial question of law can lead to the closure of appeals.
The main legal point established in the judgment is the application of consistent observations and directions from a similar case to the present appeal, leading to the setting aside of the impugned o....
The court's decision was based on the principle that no substantial question of law arose for consideration in the appeal.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
