Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (5) TMI 307 - HC - Income TaxTDS u/s 194E/194J - DTAA - Payments made to the non-resident Umpires or Match Referees come within the purview of Section 115BBA? - Income accrued or arise in India - Fees for technical service - Administrative expenses - HELD THAT The amount in respect of INDCOM was quantified by the Income-tax Officer at Rs.8,95,896.15 as representing the tax which should have been deducted at source in respect of payment made towards team administrative expenses, fees paid to Umpires and Referees and prize money. if a foreign cricket team, by virtue of agreement among the various teams of different cricket-playing countries, participates in a cricket match played in India and an agreed amount is paid to such a team for participating in such a match in the form of prize money, such prize money, whether for wining or for losing the match, will come within the term "winnings" and hence, should be treated to be "income" within the meaning of Section 2(24) (ix) of the Act. Therefore, although the payments made to them were "income" which had accrued in India, yet, those were not taxable under the aforesaid provision and thus, the liability to deduct under Section 194E of the Act never accrued. Further, it appears from the Notification No. S.O. 2085(E) dated August 21, 2008 issued under Section 194J, Explanation (a), that the sports persons and Umpires and Referees are included within the meaning of Section 194J with effect from the date of publication of such notification - Decided in the favour of assessee. Regarding DTAA - there is no provision which excludes the operation of the provisions contained in Sections 115BBA or 194E of the Act and thus, existence of those agreements did not do away with the liability of the appellant to deduct tax at the source in respect of payments of the alleged Prize Money or the Administrative expenses to the foreign teams playing on the soil of India - Appeal is partly allowed.
|