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2024 (1) TMI 20 - AT - Income TaxIncome taxable in India - Royalty u/s. 9 and/or under Article- 12 of India - payments made in terms of Sponsorship Agreement - sponsorship of the ICC Cricket Events - Singapore, DTAA - HELD THAT:- The Co-ordinate Bench in the case of Global Cricket Corporation PTE Ltd [2023 (1) TMI 161 - ITAT MUMBAI] while considering the issue of taxability of the amounts received from the sponsors for use of Event marks, signages, etc. held that such payments cannot be considered as royalty in the hands of recipient u/s. 9(1)(vi) of the Act. We find that while adjudicating taxability of amount received as Sponsorship Fee in hands of the recipient, the Tribunal referred to the decision in the case of Hero MotorCorp Ltd [2013 (8) TMI 57 - ITAT DELHI]. Thus the payments made by the assessee to GCC are not in the nature of Royalty as defined under the provisions of the Act or Article-12(3) of India- Singapore DTAA. Consequently, the assessee succeeds on ground No.1 to 6 of the appeal.
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