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2018 (7) TMI 2305 - AT - Income TaxIncome taxable in India - advertising, distribution income being the primary source of income -Permanent Establishment in India in respect of advertisement revenue - assessee company is a tax resident of Mauritius and is engaged in the business of telecasting on TV channels(TEN Sports) - DTAA between India and Mauritius - as submitted Taj TV is carrying on business from outside India and it does not have business connection in India - HELD THAT:- The issue of PE and consequent taxability of income in India is no longer res integra. The ITAT, in assessee’s own case for AY 2006- 07 [2016 (12) TMI 1291 - ITAT MUMBAI] after considering the ratio laid down in the case of DIT vs Morgan Stanley & Co. [2007 (7) TMI 201 - SUPREME COURT] held that since Taj India is being remunerated at arm’s length price, no further income or profit can be said to be attributable to the assessee in India from its PE. Thus we are of the view that Taj India does not constitute agency PE in terms of India Mauritius DTAA. Consequently, no further income / profit can be said to be attributable to the assessee in India from its PE, since Taj India is being remunerated at arm’s length price. Accordingly, we direct the AO to delete additions made towards computation of income attributable to the assessee in India. TDS u/s 195 - programming cost paid to various non residents and also payments made to M/s PanAM Sat International System Inc. and other non residents towards transponder charges u/s 40(a)(i) for failure to deduct tax - HELD THAT:- In this view of the matter and consistent with the view taken by the co-ordinate bench in assessee’s own case for earlier years [2016 (12) TMI 1291 - ITAT MUMBAI] we direct the AO to delete addition made towards disallowance of programming cost and transponder charges u/s 40(a)(i) - Decided in favour of assessee.
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