| 2018-TII-INSTANT-ALL-545 | 16 March 2018 |
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CASE LAWS
PR CIT Vs GLOBAL VANTEDGE PVT LTD: DELHI HIGH COURT (Dated: March 19, 2018) Income tax - Sections 92C & Explanation 7 to Section 271(1)(c) Keywords - ALP determination - debatable issue - levy of penalty The Revenue Department during the relevant year, had made additions to assessee's income upon examination and analysis of the transfer pricing report in the course of determination of ALP u/s 92C and the application of Rule 10B. In addition, the Department also levied penalty u/s 271(1)(c). However, the same was deleted by the ITAT by ignoring the mandate of Explanation 7 to Section 271(1)(c). On appeal, the HC held that, Whether a debatable question of fact as to validity of 'levy of penalty' in case of ALP determination, needs no writ interference - YES: HC + the Tribunal’s reasoning that the question was debatable, more so since the original amounts added were reduced by the CIT(A) and further affirmed by the Tribunal, sounds reasonable. In the circumstances, no question of law arises for consideration. Revenue's appeal dismissed CIT Vs NEW SKIES SATELLITE BV:DELHI HIGH COURT (Dated: March 19, 2018) Income tax - Section 9(1) Keywords - royalty - satellite transmission services The Revenue Department preferred present appeal challenging the action of ITAT in quashing the assessment made by AO , whereby the assessee was denied the treaty benefits by holding that the receipts of an overseas entity for providing digital channel services, would amount to royalty and hence taxable u/s 9(1) of I-T Act. On appeal, the HC held that, Whether income earned by non resident entity from providing data transmission services, fall within the term royalty u/s 9(1) of Income Tax Act - NO: HC + the question of law urged, i.e. whether the satellite transmission services rendered by the assessee amounted to royalty u/s 9(1) r/w Explanations 5 and 6 of Income Tax Act, r/w the provisions of Indo-Netherlands DTAA is no longer res integra. It is covered by this Court for a preceding Assessment Year in DIT v. New Skies Satellite BV - 2016-TII-06-HC-DEL-INTL. Revenue's appeal dismissed |
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