Verizon Communications Singapore Pte Ltd., CHENNAI V. DCIT International Taxation 1(1), CHENNAI

ITA 2013/CHNY/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9263 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 18-08-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M SRINIVASA RAOITS
• Assessee Lawyers: ALOK KUMAR SINHA; VENKATESAN R C AS
• Keywords: Double taxation relief
• Section: 234B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, D BENCH : CHENNAI . , !' # $! # % . & , ( * + [BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBE R AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ] ./I.T.A NO.2013/CHNY/2017 / ASSESSMENT YEAR : 2014-2015. VERIZON COMMUNICATIONS SINGAPORE PTE LTD, KPMG HOUSE, NO.10 MAHATMA GANDHI ROAD, NUNGAMBAKKAM HIGH ROAD CHENNAI 600 034. VS. DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATOIN1(1) CHENNAI. [PAN AADCM 6355L] ( ,- / APPELLANT) ( ./,- /RESPONDENT) / APPELLANT BY : SHRI. ALOK KUMAR SINHA AND SHRI. VENKATESAN.R. C.AS /RESPONDENT BY : SHRI. M. SRINIVASA RAO,ITS, CIT. /DATE OF HEARING : 28-03-2019 ! /DATE OF PRONOUNCEMENT : 02-04-2019 0 / O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER IN THIS APPEAL FILED BY THE ASSESSEE, IT IS AGG RIEVED THAT REVENUE OF B15,83,65,128/- RECEIVED BY IT FROM IT S INDIAN CUSTOMERS FOR PROVIDING THEM, BANDWIDTH/ INTERNATIONAL PRIVA TE LEASED CIRCUIT ITA NO.2013/2017 :- 2 -: SERVICES WAS TREATED AS ROYALTY U/S.9(1) (IV) OF TH E INCOME TAX ACT, 1961 (IN SHORT THE ACT) R.W. ARTICLE 12(3) OF THE INDIA-SINGAPORE TAX TREATY. 2. A READING OF THE GROUND TAKEN BY THE ASSESSEE CLEAR LY INDICATE THAT THE ISSUE RAISED BY IT STANDS COVER ED AGAINST THEM BY VIRTUE OF THE JUDGMENT OF HONBLE JURISDICTIONAL HI GH COURT IN THE CASE VERIZON COMMUNICATIONS SINGAPORE PTE LTD VS. ITO, 3 61 ITR 575 . IN FACT GROUND NUMBER 7 RAISED BY THE ASSESSEE IMPLICI TLY ADMITS THIS POSITION. SAID GROUND IS REPRODUCED HEREUNDER:- THAT BASED ON THE FACTS AND CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD.AO HAS FAILED TO APPRECIATE THAT IN VIE W OF THE OBSERVATIONS MADE BY HONBLE DELHI HIGH COURT IN TH E CASE OF DIT VS. SHIN SATELLITE PUBLIC CO. LTD AND NEW SKIES SATELLITE B.V. (ITA NO.473/2012, 474/2012, 500/2012 & 244/201 4), THE JUDGMENT OF HONBLE MADRAS HIGH COURT IN VERIZON COMMUNICATIONS SINGAPORE PTE LTD VS. ITO (INTERNATI ONAL TAXATION) 361 ITR 575 IS RENDERED PER INCURIUM. HONBLE JURISDICTIONAL HIGH COURT IN ITS JUDGMENT REFERRED (SUPRA), HAD HELD AS UNDER AT PARA 106, AFTER CONSIDERING VARIO US OTHER JUDGMENTS OF HIGH COURT AND DECISIONS OF THE TRIBUNAL. 106. IN THE CIRCUMSTANCES, WE AFFIRM THE ORDER OF THE TRIBUNAL HOLDING THAT THE CONSIDERATION PAID BY THE CUSTOMER TO THE ASSESSEE IS 'ROYALTY' WITHIN THE ME ANING OF EXPLANATION 2(IVA) OR IN THE ALTERNATIVE UNDER EXPLANATION 2(III) OF SECTION 9(1)(VI) OF THE INCOM E-TAX ITA NO.2013/2017 :- 3 -: ACT AND ARTICLE 12(3) OF THE DTAA BETWEEN INDIA AND SINGAPORE. WITH REGARD TO THE LEVY OF INTEREST UNDE R SECTIONS 234A, 234B AND 234D OF THE INCOME-TAX ACT, AS THE CASE MAY BE, WE REMAND THIS ISSUE ALONE TO THE INCOME-TAX APPELLATE TRIBUNAL FOR ITS CONSIDERATION ON THE MERITS AND IN ACCORDANCE WITH LAW. ACCORDINGLY, THE ABOVE TAX CASE (APPEALS) ARE DISPOSED OF. NO COSTS. CONSEQUENTLY, THE CONNECTED MISCELLANEOUS PETITIONS ARE CLOSED. ACCORDINGLY, WE DO NOT FIND ANY MERIT IN THE APPEAL FILED BY THE ASSESSEE. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMI SSED. ORDER PRONOUNCED ON TUESDAY, THE 2ND DAY OF APR IL, 2019, AT CHENNAI. SD/- SD/- ( # $! # % . & ) ( DUVVURU RL REDDY ) ( / JUDICIAL MEMBER ( . ) (ABRAHAM P. GEORGE) / ACCOUNTANT MEMBER '# / CHENNAI $% / DATED: 2ND APRIL, 2019. KV %& '()( / COPY TO: 1 . / APPELLANT 3. *+, / CIT(A) 5. (-. / / DR 2. / RESPONDENT 4. * / CIT 6. .01 / GF