Sec. 9(1)(vi), 90 & 195 of Income-tax Act, 1961— Double taxation relief—Mere amendments in the Act would not override the provisions of DTAA.

Facts: Whether Tribunal erred in relying upon the decision of Hon’ble Delhi High Court in case of payee i.e., New Skies Satellites NV, Netherlands to hold that the amount was not taxable under the treaty in hands of payee, without appreciating that the said decision of Delhi High Court had not considered the principles of updating construction, as enunciated by apex Court in case of CIT vs. Poddar Cement (P) Ltd. Etc. (1997) 141 Ctr (SC) 67 : (1997) 226 ITR 625 (SC) ?"

Held, that mere amendment to s. 9(1)(vi) cannot result in a change. It is imperative that such amendment is brought about in the agreement as well. Any attempt short of this, even if it is evidence of the State’s discomfort at letting data broadcast revenue slip by, will be insufficient to persuade this Court to hold that such amendments are applicable to the DTAAs.In view of such detailed consideration by the Delhi High Court in the case of New Skies Satellite BV, which is the foreign based company to whom the assessee has made payment in question, where identical issue came up for consideration, we do not find any reason to interfere in this appeal. - CIT V/s RELIANCE INFOCOMM LTD. - [2020] 314 CTR 551 (BOM)