OPTUS NETWORKS PTY LIMITED,AUSTRALIA V. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(2)(2) (INTERNATIONAL TAXATION), NEW DELHI, NEW DELHI

SA 120/DEL/2026

AI Insights

The case involves Optus Networks Pty Ltd, an Australian company, appealing against the decision of the Deputy Commissioner of Income Tax (DCIT), Circle-2(12)(2), International Taxation, New Delhi. The dispute centers on the recharacterization of interconnected charges as 'other income' to bring them under the tax net, thereby denying the benefits of the Double Taxation Avoidance Agreement (DTAA). The assessee argued that these charges were consistently treated as royalty or Fees for Technical Services (FTS) in the past. The Tribunal had previously decided a similar issue in favor of the assessee in the case of Oman Telecommunications Company SAOG Vs. DCIT. The department opposed the stay application, suggesting that the issue had not attained finality as they could appeal against the Tribunal's earlier decision.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 841339 (ITAT-DELHI)
• Duration Of Justice: 4 day(s)
• Appeal Type: Stay Application
• Pronouncement Date: 27-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Appeal Filed On: 23-02-2026
• Other Referred Cases: Oman Telecommunications Company SAOG Vs. DCIT ITA No. 2080/Del/2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SINGH SHARMA
• Assessee Lawyers: KAMAL SAWHNEY
• Keywords: Double taxation relief; Application of stay

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER SA No. 120/Del/2026 (In ITA No. 61/Del/2026) (Assessment Year: 2018-19) Optus Networks Pty Ltd, 1, Lyonpark Road, Macquarie Park, New South Wales 2113, Australia Vs. DCIT, Circle-2(12)(2), International Taxation, New Delhi (Appellant) (Respondent) PAN: AAEC09001C Assessee by : Shri Kamal Sawhney, Adv Shri Nikhil Agrawal, Adv Shri PUru Medhira, Adv Shri Nishank Vashishta, Adv Shri Arun Bhaduria, Adv Revenue by: Shri Vikram Singh Sharma, Sr. DR Date of Hearing 27/02/2026 Date of pronouncement 27/02/2026 O R D E R PER M. BALAGANESH, A.M: 1. This stay application has been filed by the assessee seeking recovery of stay of outstanding demand of Rs. 5,67,33,553/- for AY 2018-19. 2. Shri Kamal Sawhney appearing on behalf of the assessee submits that the consistent stand of the revenue in the past was treating the interconnected charges as royalty or FTS whereas the impugned assessment year are recharacterised under the other income just to bring the tax net to deny the benefit of DTAA. The ld counsel further referred to the decision of the Tribunal in the case of Oman Telecommunications Printed from counselvise.com SA No. 120/Del/2026 Optus Networks Pty Ltd Page | 2 Company SAOG Vs. DCIT ITA No. 2080/Del/2024 dated 24.10.2024 where identical issue was decided in favour of the assessee. He thus prayed for stay of recovery of demand for AY 2018-19. 3. Per contra Shri Vikram Singh Sharma representing the department opposed the stay application. He submitted that the issue has not attained finality as department could have filed appeal against the tribunal order in the case of Oman Telecommunication referred supra. Without prejudice, he submitted that stay can be granted subject to the payment of 20% of outstanding demand. 4. Both sides heard. Considering the entire facts, we deem it appropriate to grant stay on recovery of outstanding demand for a period of 180 days from the date of this order or till the disposal of appeal, whichever is earlier. 5. We make it very clear that observation made by us in the stay proceedings shall not act as a precedent and shall not be construed as expression of any opinion on merits of the main appeal. The main appeal shall be decided by the Bench independently and uninfluenced by any observations made by us in this order. 6. In the result, the Stay Application of the assessee is allowed. Order pronounced in the open court on 27/02/2026. -Sd/- -Sd/- (VIKAS AWASTHY) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 27/02/2026 A K Keot Printed from counselvise.com "