High Court held that interconnect service charges paid by the assessee to a non-resident telecom operator company would not amount to ‘royalty’, hence not liable to deduct tax at source. SLP of revenue was dismissed on account of a delay of 256 days and also on the merits.
Dy. CIT (IT) v. Orange (2025) 307 Taxman 616 (SC) Editorial : Dy. CIT (IT) v. Orange (2025) 180 taxmann.com 108 (Karn)(HC).
S. 9(1)(vi): Income deemed to accrue or arise in India-Royalty-Telecom or transmission services-Interconnect service charges paid to a non-resident telecom operator-Not royalty-Not liable to deduct tax at source-SLP of revenue dismissed on account of delay of 256 days as also on merits. [Art. 136]