Asstt. CIT v. Sanskar Info. T.V.P. Ltd.

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The Tax PublishersIT Appeal No. 6188 (Mum) of 2004 2012 TaxPub(DT) 0759 (Mum-Trib) : (2008) 024 SOT 0087 INCOME TAX ACT 1961 Income deemed to accrue or arise in India - Under section 9(1)(vi) -Royalty -Deduction of TDS under section 195 The assessee-company entered into a digital broadcast service agreement with a foreign non-resident satellite company ST. The assessee paid certain sum to ST towards transponder and uplinking charges without deduction of tax at source. The Assessing Officer disallowed under section 40(a)(i) on the ground that the amount paid to S was covered by provisions of section 195 and assessee was required to deduct tax. Held : Rental charges for hiring transponder capacity paid by assessee-company to foreign company 'ST' was covered by the definition of royalty attracted provisions of section 9(1)(vi) therefore assessee would require to deducted tax at source since assessee had failed to do so Assessing Officer was justified. Income Tax Act, 1961 Section 54 Case Law Analysis : Asia Satellite Telecommunications Co. Ltd. v. Dy. CIT (2003) 85 ITD 478 (Delhi) : 2003 TaxPub(DT) 0648 (Del-Trib) ; Satellite Television Asia Region Ltd. v. Dy. CIT (2006) 99 ITD 91 (Mum.) : 2006 TaxPub(DT) 1225 (Mum-Trib) ; Transmission Corporation of A.P. Ltd. v. CIT (1999) 239 ITR 587 (SC) : 1999 TaxPub(DT) 1403 (SC) and CIT v. Vijay Ship Breaking Corpn. (2003) 261 ITR 113 (Guj) : 2003 TaxPub(DT) 1123 (Guj-HC) Decision : In favour of Revenue. A.Y : 2001-02 IN THE ITAT MUMBAI 'D' BENCH RAJPAL YADAV, J.M. & B. RAMAKOTAIAH, A.M. Asstt. CIT v. Sanskar Info. T.V.P. Ltd. *IT Appeal No. 6188 (Mum) of 2004* A.Y. 2001 -02 *10 June 2008* Section 9, read with sections 40(a)(i) and 195, of the Income Tax Act, 1961 -Income - Deemed to accrue or arise in India - Assessment year 2001-02 Appellant by : Ashok Rao Respondent by : Mohit Jain ORDER SUBSCRIBE FOR FULL CONTENT

The Tax PublishersIT Appeal No. 6188 (Mum) of 2004
2012 TaxPub(DT) 0759 (Mum-Trib) : (2008) 024 SOT 0087

INCOME TAX ACT 1961

Income deemed to accrue or arise in India - Under section 9(1)(vi) -Royalty -Deduction of TDS under section 195

The assessee-company entered into a digital broadcast service agreement with a foreign non-resident satellite company ST. The assessee paid certain sum to ST towards transponder and uplinking charges without deduction of tax at source. The Assessing Officer disallowed under section 40(a)(i) on the ground that the amount paid to S was covered by provisions of section 195 and assessee was required to deduct tax. Held : Rental charges for hiring transponder capacity paid by assessee-company to foreign company 'ST' was covered by the definition of royalty attracted provisions of section 9(1)(vi) therefore assessee would require to deducted tax at source since assessee had failed to do so Assessing Officer was justified.

Income Tax Act, 1961 Section 54

Case Law Analysis : Asia Satellite Telecommunications Co. Ltd. v. Dy. CIT (2003) 85 ITD 478 (Delhi) : 2003 TaxPub(DT) 0648 (Del-Trib) ; Satellite Television Asia Region Ltd. v. Dy. CIT (2006) 99 ITD 91 (Mum.) : 2006 TaxPub(DT) 1225 (Mum-Trib) ; Transmission Corporation of A.P. Ltd. v. CIT (1999) 239 ITR 587 (SC) : 1999 TaxPub(DT) 1403 (SC) and CIT v. Vijay Ship Breaking Corpn. (2003) 261 ITR 113 (Guj) : 2003 TaxPub(DT) 1123 (Guj-HC)

Decision : In favour of Revenue.
A.Y : 2001-02

IN THE ITAT MUMBAI 'D' BENCH

RAJPAL YADAV, J.M. & B. RAMAKOTAIAH, A.M.

Asstt. CIT v. Sanskar Info. T.V.P. Ltd.

IT Appeal No. 6188 (Mum) of 2004

A.Y. 2001 -02

10 June 2008

Section 9, read with sections 40(a)(i) and 195, of the Income Tax Act, 1961 -Income - Deemed to accrue or arise in India - Assessment year 2001-02

Appellant by : Ashok Rao

Respondent by : Mohit Jain

ORDER