High Court held that payment made by the assessee to non-resident telecom operators for providing interconnect service charges and transfer of capacity in foreign countries was not chargeable to tax as royalty; the High Court order held that, following the aforesaid view, interconnect service charges would not constitute royalty and would not be taxable in India. There was a gross delay of 308, 47 and 473 days in filing SLP, and reasons assigned for seeking condonation of delay were neither satisfactory nor sufficient in law so as to condone the delay and, thus, the SLP filed was to be dismissed on the ground of delay as well as on merits.
Dy.CIT v. Emirates Telecommunications Group Company (Etisalat Group). (2026) 308 Taxman 240 (SC) Editorial : Dy. CIT v. Emirates Telecommunications Group Company (Etisalat Group) (2025) 181 taxmann.com 658 (Karn)(HC)
S. 9(1)(vi): Income deemed to accrue or arise in India-Royalty-Payments made to non-resident telecom operators by assessee, for providing interconnect services and transfer of capacity in foreign countries was not chargeable to tax as royalty or fees for technical services-Order of High Court affirmed-Delay of 308, 457 and 473 days-SLP of revenue dismissed on account of delay and also on merits-OECD Model Convention, Art. 12. [S.9(1)(vii), Art. 136]
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