Intelsat Global Sales and Marketing Limited, CHENNAI V. DCIT, CHENNAI

ITA 645/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6107 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 11-07-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 15-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.645/MDS/2017 ( )( / ASSESSMENT YEAR : 2013-14 M/S INTELSAT GLOBAL SALES AND MARKETING LIMITED, C/O PRICEWATERHOUSECOOPERS (P) LTD., 8 TH FLOOR, PRESTIGE PALLADIUM BAYAN, 129-140, GREAMS ROAD, CHENNAI - 600 006. PAN : AABCI 1539 E V. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), INTERNATIONAL TAXATION, CHENNAI. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI ASHIK SHAH, CA -.+, / 0 / RESPONDENT BY : SMT. T.H. VIJAYALAKSHMI, CIT 1 / 2% / DATE OF HEARING : 20.09.2017 3') / 2% / DATE OF PRONOUNCEMENT : 27.09.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE ASSESSMENT DATED 11.01.2017, CONSEQUENT TO THE DIRECTION OF THE DRP DATED 19.12.2016, FOR THE ASSESSMENT YEAR 2 013-14. 2 I.T.A. NO.645/MDS/17 2. WHEN THE APPEAL WAS TAKEN UP FOR HEARING, THE LD . REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT ON I DENTICAL ISSUE, THIS TRIBUNAL EXAMINED THE SAME AND FOUND OUT THAT THE CLAIM OF ASSESSEE THAT THE EQUIPMENT INSTALLED AT CHANDIGARH AND CHENNAI WAS DISMANTLED IN THE YEAR 2004 WAS NOT BROUGHT ON RECORD BEFORE THE AUTHORITIES BELOW. IT WAS ALSO FOUND THAT THE ASSESSING OFFICER PROCEEDED AS IF THE ASSESSEE WAS MAINTAINING THE EQ UIPMENT AT CHANDIGARH AND CHENNAI FOR ALL THE ASSESSMENT YEARS CONTINUOUSLY. ACCORDINGLY, THIS TRIBUNAL REMITTED BACK THE MATTER TO THE ASSESSING OFFICER TO RE-EXAMINE THE MATTER AFTER EXAMINING TH E TECHNICAL EXPERTS FROM VSNL WHO ARE RESPONSIBLE FOR MAINTAINI NG THE EARTH STATION IN INDIA OR ANY OTHER COMPANIES WHICH HAVE ENTERED INTO AGREEMENT WITH THE ASSESSEE AND BRING ON RECORD THE ACTUAL SERVICES RENDERED BY THE ASSESSEE CONSEQUENT TO THE AGREEMENT SAID TO BE ENTERED INTO WITH TELECASTING COMPANIES / TELECOM OPERATORS AND THEREAFTER DECIDE THE ISSUE IN ACCORD ANCE WITH LAW. SINCE THE ISSUES RAISED BY THE ASSESSEE FOR THE YEA R UNDER CONSIDERATION ALSO IDENTICAL, THE LD. REPRESENTATIV E SUBMITTED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER WITH IDENTICAL DIRECTION. 3 I.T.A. NO.645/MDS/17 3. SMT. T.H. VIJAYALAKSHMI, THE LD. DEPARTMENTAL REPRESENTATIVE ALSO BROUGHT TO THE NOTICE OF THIS B ENCH THAT ON IDENTICAL SITUATION, THIS TRIBUNAL REMITTED BACK TH E MATTER TO THE FILE OF THE ASSESSING OFFICER, THEREFORE, FOR THIS ASSESSME NT YEAR ALSO THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSE SSING OFFICER FOR RECONSIDERATION. REFERRING TO THE RATE OF TAX FOR TDS, THE LD. D.R. SUBMITTED THAT THIS ISSUE WAS ALSO REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER, THEREFORE, FOR THE YEAR UNDER CO NSIDERATION ALSO, THE RATE OF TAX ON PAYMENT OF ROYALTY MAY BE REMITT ED BACK TO THE FILE OF THE ASSESSING OFFICER. 4. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY BOTH THE PARTIES AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. ON IDENTICAL CIRCUMSTANCES, THIS TRIBUNAL IN THE ASSES SEE'S OWN CASE FOR ASSESSMENT YEARS 2002-03 TO 2012-13 IN I.T.A. NOS.1 070 TO 1074 & 1621/MDS/2010, 1562/MDS/2011, 2246/MDS/2012, 470/MD S/2014, 432/MDS/2015 AND 516/MDS/2016, EXAMINED THIS ISSUE ELABORATELY AND FOUND THAT THE MATTER NEEDS TO BE RE-EXAMINED. IN FACT, THIS TRIBUNAL EXAMINED THE MATTER ON FACTS AND DIRECTED THE ASSESSING OFFICER TO RE-EXAMINE AS FOLLOWS:- 4 I.T.A. NO.645/MDS/17 16. IF THE ASSESSEE-COMPANY DISMANTLED THE EQUIPMENT / MACHINERY INSTALLED AT CHANDIGARH AND CHENNAI IN TH E YEAR 2004, IT IS NOT KNOWN HOW THE ASSESSEE IS TESTING THE Q UALITY OF SIGNAL RETRANSMITTED TO INDIA. THE SO CALLED EA RTH STATION MAINTAINED BY VSNL AND OTHER COMPANIES IN I NDIA MAY BE DOWN LINKING THE SIGNAL/DATA FROM THE SATELL ITE. THE QUESTION ARISES FOR CONSIDERATION IS WHETHER THE EA RTH STATION SAID TO BE MAINTAINED BY VSNL AND OTHER COM PANIES COULD RECEIVE SIGNAL/DATA WITHOUT ANY INTERVENTION BY THE ASSESSEE-COMPANY IN INDIA. THIS FACT WAS NOT EXAMIN ED BY BOTH THE AUTHORITIES BELOW. FURTHER, HOW THE SIGNA LS WERE RECEIVED IN INDIA WITHOUT INTERVENTION OF THE ASSES SEE- COMPANY NEEDS TO BE EXAMINED. THIS TRIBUNAL IS OF T HE CONSIDERED OPINION THAT TECHNICAL EXPERTS FROM VSNL OR ANY OTHER COMPANIES WHICH ENTERED INTO AGREEMENT WITH ASSESSEE-COMPANY NEEDS TO BE EXAMINED ABOUT THE MODE OF RECEIPT OF SIGNAL/DATA WHICH WAS RETRANSMITTED BY T HE ASSESSEE-COMPANY IN INDIA. SINCE THE ASSESSING OFF ICER HAS NOT EXAMINED THE TECHNICAL EXPERTS, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT TO APPRECIATE THE REAL SERV ICES RENDERED BY THE ASSESSEE, THE MATTER NEEDS TO BE RE - EXAMINED BY THE ASSESSING OFFICER. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE AND T HE ENTIRE ISSUE IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE THE MATTER AF RESH AFTER EXAMINING THE TECHNICAL EXPERTS FROM VSNL WHO I S RESPONSIBLE FOR MAINTAINING THE EARTH STATION IN IN DIA OR ANY OTHER COMPANIES WHICH HAS ENTERED INTO SIMILAR AGRE EMENT WITH THE ASSESSEE AND BRING ON RECORD THE ACTUAL SE RVICES RENDERED BY THE ASSESSEE CONSEQUENT TO THE AGREEMEN T SAID TO BE ENTERED INTO TELECASTING COMPANIES / TELECOM OPERATORS AND THEREAFTER DECIDE THE ISSUE IN ACCORD ANCE WITH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO T HE ASSESSEE. 5. IN VIEW OF THE ABOVE, THIS TRIBUNAL IS OF THE CO NSIDERED OPINION THAT DURING THE YEAR UNDER CONSIDERATION AL SO IT NEEDS TO BE RE-EXAMINED. ACCORDINGLY, THE ORDERS OF BOTH THE A UTHORITIES BELOW 5 I.T.A. NO.645/MDS/17 ARE SET ASIDE AND THE ASSESSING OFFICER IS DIRECTED TO RE-EXAMINE BOTH THE ISSUES IN THE LIGHT OF THE DIRECTION ISSUE D BY THIS TRIBUNAL FOR ASSESSMENT YEARS 2002-03 TO 2012-13. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 27 TH SEPTEMBER, 2017 AT CHENNAI. SD/- SD/- (. !'# ! ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 27 TH SEPTEMBER, 2017. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. DRP-2, BANGALORE 4. PRINCIPAL CIT-1, CHENNAI. 5. CIT (TP), CHENNAI 6. 79 -2 /DR 7. ( : /GF.