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2011 (11) TMI 23 - AT - Income TaxTDS on Royalty 195- Broadcasting of cricket matches - 'live feed' or 'recorded feed' - Royalty defined in DTC Bill, 2010 - DDIT has held that income can be held as accruing or arising to Nimbus directly or indirectly through or from any business connection in India. In reaching this conclusion the DDIT has noticed that the assessee, by broadcasting the matches in India will be earning income from advertisement and subscription. This income is taxable in the hands of the assessee. It is on this basis that the DDIT has held that the payment made by the assessee to Nimbus will be held as arising out of business connection in India, - Held that:- Nimbus has provided license for the live broadcast of certain matches to the assessee for a definite consideration. The rights in such broadcast vest with Nimbus. After the live broadcast by the assessee, Nimbus will continue to hold right over such broadcast. The mere act of allowing the assessee by Nimbus to live broadcast the matches for a defined consideration, in our considered opinion, would not constitute a business connection in India. In the case of R.D. Aggarwal And Company And Anothers (1964 -TMI - 49330 - SUPREME Court) the Hon'ble Supreme Court has held that the expression "business connection" undoubtedly mean some thing more than "business". A business connection has been held to be involving a relation between the business carried on by a nonresident yielding profits or gains and some activity in the taxable territories which provides directly or indirectly to the earning of those profits or gains. A stray or isolated transaction has been held to be not constituting a business connection. As the consideration for live broadcasting does not fall either u/s 9(1)(i) or u/s 9(1)(vi), such amount is not chargeable to tax under the provisions of this Act in the hands of non-resident. - Decided in favor of assessee.
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