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2024 (1) TMI 21 - AT - Income TaxIncome taxable in India - royalty receipts - whether the right to broadcast “Live events” is not “copyright” and payment made thereto is “Royalty” u/s 9(1)(vi) or not? - HELD THAT:- We hold that broadcasting “Live events” does not amount to a work in which copyright subsists, meaning thereby right to broadcast live events i.e., “Live Rights”, is not “copyright” and therefore any payment made thereto can’t be said to be chargeable to tax as royalty under section 9(1)(vi). See Delhi Race Club [2014 (12) TMI 265 - DELHI HIGH COURT], Fox Network Group Singapore Pvt. Ltd. [2020 (3) TMI 1428 - ITAT DELHI], Cricket Australia [2023 (8) TMI 1253 - ITAT DELHI] Further the courts have held that when the agreements clearly bifurcate the consideration paid towards Live and “Non-Live Rights”, the Department can’t deem the payment made for “Live Rights” to have been made for a bouquet of rights. Whether payments were made for the use of “process” or not? - We find that the payments in dispute are made to overseas rights holder. The said payments are neither made to any satellite operators nor for use of any satellite. Thus, the payments in dispute are not made for use of any “process” as defined u/s 9(1)(vi) of the Act and can’t be charged to tax as “Royalty” in the hands of the overseas rights holders. Accordingly, we hold that the AO while passing the order u/s 201 of the Act has erred in law by treating the remittances to have been made for use of a “Process”. Appeal of the assessee is allowed.
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