Dismissing the appeal of the revenue the Court held that the payment received for use or right to use scientific or commercial equipment is not royalty considering the section 9(1)(vi) , Explanation (2) (iii) and (iva) and Article 12(3) (a) of India -USA DTAA.
CIT (IT) v. Intelsat Corporation ( 2020) 113 taxmann.com 596 ( Delhi ) (HC) Editorial: SLP is granted to the revenue , CIT (IT) v. Intelsat Corporation ( 2020) 113 taxmann.com 597 / 269 Taxman 369 (SC)
S. 9(1(vi) : Income deemed to accrue or arise in India – Royalty – Right to use scientific or commercial equipment – Not royalty -Not liable to tax – DTAA- India – USA [ Art. 12(3) ]