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2010 (11) TMI 45 - CALCUTTA HIGH COURTTDS – hosting of cricket world cup - Foreign Cricket Associations – territorial jurisdiction – Section 115BBA, 201 - Held that - Once it is established the income is payable then deduction is a matter of course. From the facts recorded by all the authorities it appears that PILCOM has made payment to the foreign sports association. Once the payment is made and received by way of a participation in any matches played in India the said on resident assessee has to meet deduction of tax under Section 115BBA - Similarly, if any amount including the guaranteed amount is paid to any non-resident sports association in relation to any match played in India the said income has to be subjected to deduction of tax at source - It is rightly argued that the DTAA in the transaction has no connection at all for the reason firstly both the tax authorities factually found that neither of the Article of the agreement concerned does help to claim exemption from payment of tax under Section 115BBA nor relieves PILCOM from the obligation of deducting tax from the payment made under Section 194E obligation to deduction under Section 194E is not affected by the DTAA since such a deduction is not the final payment of tax nor can be said to be an assessment of tax. The deduction has to be made and after it is done the assessee concerned gets the credit of the same and once it is found later on that income from which the deduction is made is not exigible to tax then on application being made refund with interest is always allowed. Fundamental distinction between the deduction at source by the payer is one thing and obligation to pay tax is another thing. – CIT v. Eli Lilly and Co. (India) P. Ltd. (2009 -TMI - 32752 - SUPREME COURT) - Order of tribunal upheld – decided in favor of revenue
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