Inmarsat Global Ltd. v. Dy. CIT

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The Tax Publishers2021 TaxPub(DT) 1907 (Mum-Trib)

INCOME TAX ACT, 1961

Section 9(1)(vi)

Following the decision rendered in assessee's own case Inmarsat Global Limited C/o SRBC & Associates LLP v. Dy. CIT (International Taxation), Circle 2 (2) (1), 2020 TaxPub(DT) 4440 (Mum-Trib), amounts received by the assessee from TCL for providing Satellite Telecommunication Services is not to be held as royalty in its hands.

Income deemed to accrue or arise in India - Under section 9(1)(vi) - Receipts from providing Satellite Telecommunication Services, whether constitutes royalty -

Assessee company was incorporated and registered under laws of UK and was engaged in the business of providing telecommunication services. It received certain receipts from providing Satellite Telecommunication Services to TCL. AO held that the income received from TCL should be taxed as a royalty under India-UK Tax Treaty as defined under section 9(1)(vi) as well as under article 13(3)(a) of DTAA between India and United Kingdom. Held: Tribunal in assessee's own case in Inmarsat Global Limited C/o SRBC & Associates LLP v. Dy. CIT (International Taxation) Circle 2 (2) (1) 2020 TaxPub(DT) 4440 (Mum-Trib) has concluded, that the amounts received by the assessee from TCL for providing Satellite Telecommunication Services is not to be held as royalty in its hands. Thus, following the same, treating the receipts from TCL as royalty and taxed under India-UK Tax Treaty could not be held as justified.

Followed:Inmarsat Global Limited C/o SRBC & Associates LLP v. Dy. CIT (International Taxation), Circle 2 (2) (1), 2020 TaxPub(DT) 4440 (Mum-Trib)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Section 9(1)(vi)