DCIT, Circle- 1(1)(1), International Taxation, New Delhi V. Asia Satellite Telecommunications Company Ltd., New Delhi

ITA 7368/DEL/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3356 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 08-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GANGADHAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI D BEN CH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI AMIT SHUKLA, JUDICIAL MEMB ER ITA NO. 7368/DEL/2017 [ASSESSMENT YEAR: 2014-15] THE DY. C.I.T VS. ASIA SATELLITE TELECOMMUNICATI ONS CIRCLE 1(1)(1) COMPANY LTD, 12F, HARBOUR CENT RE NEW DELHI WANCHAL HONGKONG PAN : AADCA 7848 N [APPELLANT] [RESPONDENT] DATE OF HEARING : 11.10.2021 DATE OF PRONOUNCEMENT : 11.10.2021 ASSESSEE BY : SHRI RISHAB MALHOTRA, ADV REVENUE BY : SHRI GANGADHAR PANDA, CIT- DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE LD. CIT(A)- 42, NEW DELHI DATED 15.09.2017 PERTAINI NG TO A.Y 2014-15. 2 2. THE SOLITARY GRIEVANCE OF THE REVENUE IS THAT TH E LD. CIT(A) ERRED IN HOLDING THAT THE RECEIPT OF ASSESSEE FROM CUSTOM ERS CANNOT BE TAXED AS FEE FOR TECHNICAL SERVICES [FTS] U/S 9(1)(VII) O F THE INCOME TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHOR T]. 3. AT THE VERY OUTSET, THE LD. COUNSEL FOR THE ASSE SSEE STATED THAT THE QUARREL EMANATING FROM THE ASSESSMENT ORDER WAS THAT THE RECEIPTS OF THE ASSESSEE WERE TREATED AS ROYALTY AND ALSO FT S BY THE ASSESSING OFFICER AND LD. CIT(A) HAVING CONVINCED HIMSELF WIT H THE FACT THAT RECEIPTS ARE TAXABLE AS ROYALTY, AS WAS DONE IN EAR LIER A.YS, HELD THAT THE SAME RECEIPTS CANNOT BE TAXED AS FTS. 4. IT IS THE SAY OF THE LD. COUNSEL FOR THE ASSESSE E THAT THE QUARREL RELATING TO ENTIRE RECEIPTS TREATED AS ROYALTY HAS BEEN SETTLED UNDER THE VIVAD SE VISHWAS SCHEME, 2020 AND THE APPEAL OF THE ASSESSEE IN ITA NO. 7117/2017 HAS BEEN DISMISSED AS WITHDRAWN. THEREFORE, THIS APPEAL OF THE REVENUE SHOULD BE TREATED AS INFRUCTU OUS. 5. WE HAVE GIVEN THOUGHTFUL CONSIDERATION TO THE CO NTENTIONS OF THE LD. COUNSEL FOR THE ASSESSEE. IN OUR CONSIDERED OP INION, WHEN THE ENTIRE INCOME HAS BEEN OFFERED FOR TAXATION AND THE QUARREL HAS BEEN 3 SETTLED UNDER VIVAD SE VISHWAS SCHEME, 2020, THEN T HE REVENUE SHOULD NOT HAVE ANY GRIEVANCE WHATSOEVER. ACCORDINGLY, TH IS APPEAL OF THE REVENUE BECOMES OTIOSE. 6. IN THE RESULT THE APPEAL OF THE REVENUE IN ITA N O. 7368/DEL/2017 IS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF BOTH THE REPRESENTATIVES ON 11.10.2021. SD/- SD/- [AMIT SHUKLA] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 11 TH OCTOBER, 2021 VL/ COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI 4 DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER