(Judgment of the Court was delivered by Dr.Anita Sumanth, J.,) The above Appeal is filed by the assessee and was admitted on the following substantial questions of law:-
"(i) Whether in the facts and circumstances of the case and on the evidence on record, the order of the Tribunal is not correct in law and perverse in view of the fact that
(a) the payments made in respect of uplinking and transponder hire charges cannot be subject to Indian Income-tax Act, in view of the provisions of Double Taxation Avoidance Agreements entered into between India and the respective foreign nations?
(b) the No Objection Certificate has been issued by the assessing officer for making payments to foreign companies is not sufficient compliance under section 195(2) of the Income Tax Act?
(ii) Whether in the facts and circumstances of the case, the Tribunal was right in confirming the order of the Income-tax Officer that the appellant is liable for deduction of tax in terms of Section 195 of the Income-tax Act, 1961 in respect of uplinking and transponder hire charges made to foreign companies and consequently liable for levy of tax and interest in terms of Section 201(1) and 201(1A) of the Income- tax Act, 1961?"
2. Neither of the questions raised for our consideration arise from the impugned order of the Tribunal. Though the issue before the Tribunal was the taxability of remittances for uplinking and transponder hire charges made to M/s.Intersputnic, Moscow and M/s.Teleport, Singapore by the appellant, the Tribunal proceeded on a tangent. The Tribunal allows the appeal of the Revenue on the basis of the view prevailing then, to the effect that it was mandatory for the payer to deduct tax or file an application under sectin 195(2) seeking directions in this regard from the Assessing Officer. This position has since been reversed by the Supreme Court in its judgment in G.E. Technology Centre (327 ITR 456). In view of the above judgment of the Supreme Court, the conclusion of the Tribunal is incorrect in law and the matter deserves to be remanded to the Tribunal to be heard and decided on merits.
3. Both the questions are, thus, returned, unanswered, to the Tribunal, which shall hear and decide the appeal after affording opportunity to the parties, in accordance with law. The Tax Case (Appeals) are allowed by way of remand. No costs. The connected miscellaneous petition is closed.
Index: Yes / no Internet: Yes/no ssk.
(H.G.R.,J) (A.S.M.,J) 24th January 2017 HULUVADI G. RAMESH, J., AND DR.ANITA SUMANTH, J., ssk.
To The Income-tax Officer, T.D.S. V, VII Floor, Aayakar Bhavan, 121, Mahatma Gandhi Road, Nungambakkam, Chennai 600 034.
T.C.A.No.2413 of 2006 24.1.2017.
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