ADIT Circle-2(1) Internattional Circle, V. New Skies Satellite N.V. 2517 KR,

ITA 184/DEL/2008

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4176 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 25-04-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 21-01-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MAHAJAN
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI B.K. HALDAR ITA NOS. 183, 184 & 185/DEL/08 ASSTT. YRS: 2000-01, 2001-02 & 2002-03 ASSTT. DIRECTOR OF INCOME-TAX, VS. M/S NEW SKIES SATELLITE NV 2517KR 2(1), INTERNATIONAL TAXATION, (NOW KNOWN AS NEW DELHI. NEW SKIES SATELLITE BV) THE HAUGE, THE NETHERLANDS. ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI A.K. MAHAJAN CIT( DR) RESPONDENT BY : SHRI PAWAN KUMAR AR O R D E R PER R.P. TOLANI, J.M: : BY THESE THREE APPEALS, THE REVENUE HAS CHALLENGED THE DELETION OF PENALTIES U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961 RELATING TO A.Y. 2000- 01, 2001-02 & 2002-03. 2. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET CONTENDS THAT IN QUANTUM APPEALS, THE ADDITIONS WHICH WERE SUBJECT M ATTER FOR LEVY OF IMPUGNED PENALTIES, HAVE SINCE BEEN DELETED BY THE ITAT DELHI BENCH D VIDE ITS CONSOLIDATED ORDER DATED 11-3-2011 RENDERE D IN ITA NOS. 5385, 5386 & 5387/DEL/04 AND THE SAID APPEALS WERE DECIDE D BY ITAT CONSEQUENT TO HONBLE DELHI HIGH COURT ORDER DATED 17-2-2001. RELEVANT OBSERVATIONS OF ITAT, DELETING THE ADDITIONS, ARE AS UNDER: 11. AS A RESULT, THE APPEAL PREFERRED BY THE ASSES SEE BEFORE THE HONBLE HIGH COURT WAS ALLOWED AND THE JUDGMENT OF THE TRIBUNAL WAS SET ASIDE. 2 12. THEREFORE, IN THE LIGHT OF THE DISCUSSIONS MADE ABOVE AND IN THE LIGHT OF THE FACT THAT THE FACTS OF THE PRES ENT CASE ARE IDENTICAL TO THAT OF THE CASE DECIDED BY THE HONBL E HIGH COURT IN THE CASE OF ASIA SATELLITE TELECOMMUNICATION CO. LTD. (SUPRA) AND RESPECTFULLY FOLLOWING THE DECISION OF HONBLE HIGH COURT OF DELHI IN THE ABOVE REFERRED CASE OF ASIA S ATELLITE TELECOMMUNICATIONS CO. LTD., WE HOLD THAT THE SERVI CE CHARGES RECEIVED BY THE ASSESSEE FROM VARIOUS TV CHANNELS O N ACCOUNT OF PROVIDING FACILITY OF BROADCASTING THEIR PROGRAM MES THROUGH THE TRANSPONDERS LOCATED ION THE SATELLITES ARE NOT LIABLE TO BE TAXED AS ROYALTY IN INDIA. 13. AT THIS STAGE, IT IS PERTINENT TO NOTE THAT A C OORDINATE BENCH OF INCOME-TAX APPELLATE TRIBUNAL I.E. DELHI B ENCH C, NEW DELHI IN THE CASE OF M/S INTEL SAT CORPORATION VS. ADIT IN ITA NO. 543/DEL/2010 PERTAINING TO THE ASSESSMENT Y EAR 2007- 08 VIDE ORDER DATED 04-03-2011, HAS DECIDED THE ISS UE IN FAVOUR OF THE ASSESSEE AFTER FOLLOWING THE DECISION OF HON BLE DELHI HIGH COURT IN THE CASE OF ASIA SATELLITE TELECOMMUN ICATIONS PVT. LTD. (SUPRA). 14. WE THEREFORE, SET ASIDE THE ORDERS OF THE AUTHO RITIES BELOW AND DELETE THE ADDITIONS MADE BY THE ASSESSING OFFI CER ON THIS ACCOUNT. 2.1. SINCE THE ISSUE ADDITIONS QUA WHICH THESE PENA LTIES WERE IMPOSED HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE, THE CIT(A) S IMPUGNED ORDER CANCELING THE PENALTY U/S 271(1)(C) IN THESE THREE YEARS DESERVES TO BE UPHELD. 3. LEARNED DR IS HEARD. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND HAVE GONE TH ROUGH THE ENTIRE MATERIAL AVAILABLE ON RECORD. THE CIT(A) HAS DELETE D THE PENALTY ON THE MERITS OF THESE CASES VIDE CONSOLIDATED ORDER DATED 13-9-2007. BESIDES, THE ITAT DELHI BENCH D (SUPRA), IN ASSESSEES CASE, B Y FOLLOWING THE JUDGMENT OF HONBLE DELHI HIGH COURT, HAS DECIDED T HE QUANTUM ISSUE IN 3 FAVOUR OF THE ASSESSEE. CONSEQUENTLY, THERE REMAINS NO ISSUE FOR LEVY OF PENALTY IN QUESTION ON THE ASSESSEE. IN VIEW OF THE SE OBSERVATIONS, CIT(A)S ORDER, DELETING THE PENALTIES IN QUESTION IS CONFIR MED ON THE BASIS THAT SINCE QUANTUM ADDITIONS HAVE BEEN DELETED THE VERY BASIS FOR LEVY OF PENALTIES HAS GONE. 5. IN THE RESULT, REVENUES APPEALS ARE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 25-04-2011. SD/- SD/- ( B.K. HALDAR ) ( R.P. TOLANI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 25-04-2011. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR