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2023 (8) TMI 1253 - AT - Income TaxRoyality u/s 9 - Addition in respect of license fee for live and non-live transmission qua Sony Pictures Networks India Pvt.Ltd. - whether live transmission of sports events in the modern era is not merely a process of streaming event from the venue to the television set of the viewer? - As per the AO, there is a value addition in live transmission likely there are studios having hosts speaking vernacular languages, interviewing experts and celebrity guests and playing short bites of replay of important moments in the game/match even as the game continues - HELD THAT:- In the light of binding precedents in New Skies Satellite BV [2016 (2) TMI 415 - DELHI HIGH COURT] we are of the considered view that the AO was not justified in making the impugned addition. The Revenue has not pointed out that corresponding amendment has been made in DTAA. In the absence of any corresponding change into DTAA in terms, ratio laid down in New Skies Satellite BV (Supra) the amended provision of section 9 of the Act, would have no application. The AO is therefore, directed to delete the addition. Ground Nos. 1 to 4 raised by the assessee is allowed. Treatment of tournament fees and reimbursement of dinner tickets as Royalty - HELD THAT:- DRP had directed the AO to spell out the reasons for treating the amount in question as “Royalty”. The AO failed to spell out the reasons in final assessment order. He has simply repeated the findings of draft order. Therefore, in the absence of clear finding on the part of the AO as to how this amount should be treated as “Royalty”. The findings cannot be sustained. We therefore, direct the AO to delete this addition. Ground No.5 raised by the assessee is thus, allowed. Non-granting credit of tax withheld at source - HELD THAT:- Considering the submissions made by assessee, we hereby, direct the AO to verify the factum of withholding of tax at source amounting and grant credit in accordance with law. Ground No.6 raised by the assessee is thus, allowed.
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