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TMI Blog2016 (2) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... en heard together and are being disposed off by this consolidated order. For the sake of convenience, the grounds raised in ITA No.8748/Mum/2011 are taken for consideration and the same are reproduced hereunder :- "Taxability of Advertisement Revenues 1. On the facts and circumstances of the case and in law, the Learned Assistant Director of Income Tax (International Taxation), Range 4(1), Mumbai ("AO") erred in holding, and, further, the Hon'ble Dispute Resolution Panel ("DRP") erred in confirming, that the Appellant has a business connection in India. 2. On the facts and circumstances of the case and in law, the Learned AO erred in holding, and the Hon'ble DRP erred in confirming, that the Appellant has a Permanent Establi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even assuming (without admitting) that the distribution revenues are in the nature of royalty income, on the facts and circumstances of the case and in law, where it is held that the Appellant has a PE in India in respect of its broadcasting activities, the Learned AO and the Hon'ble DRP erred in not treating the distribution revenues as effectively connected with the alleged PE and taxing the same on a net basis. Further, the Learned AO and Hon'ble DRP ought to have held that the distribution revenues are not taxable in India on the ground that MSMI has earned an arm's length remuneration in relation to distribution activities, which extinguishes the tax liability of the Appellant in India, and that no income is taxable in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losses during the year. 11. Without prejudice to above, even assuming (without admitting) that the interest received under Section 244A of the Act is effectively connected with the Appellant's alleged PE in India, on the facts and circumstances of the case and in law, the Learned AO and the Hon'ble DRP erred in not appreciating that only so much of the interest income that is attributable to the alleged PE of the Appellant in respect of advertisement revenues should be taxed under Article 11 (4) of the Treaty and the balance interest income should be taxed under Article 11 (2) of the Treaty. On the facts and circumstances of the case and in law, the Learned AO erred in not granting additional TDS credit of Rs. 76,209,382 claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears 2005-06 and submitted that the all the issues raised in the present appeals are squarely covered by the decision of the Tribunal in the aforesaid order, which have also been confirmed by the Hon'ble High Court also. 5. Per Contra, ld. DR fairly agreed to the submission made by the ld. AR in this regard. 6. We have perused the record and given our thoughtful consideration to the submissions advanced at the hands of learned counsel for the assessee and learned DR for the revenue as well as gone through the order of the Tribunal in assessee's own case for the previous years. We find that all the three issues i.e. taxability of advertisement revenue, taxability on distribution revenue and taxability of interest received u/s.244A have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axable on the ground that it has been paid at Arm‟s length price, therefore, this ground becomes purely academic." 6.3 In regard to taxability of interest received u/s.244A taxability on distribution revenue, the Tribunal has decided the issue in favour of the assessee. The relevant observations of the Tribunal are as under :- "16. As regards the issue relating to taxability of interest received u/s 244A, it is admitted that, so far as taxability of interest u/s 244 is concerned, under Article 11(4) of India Singapore Treaty, the same is now covered by the decision of the Hon‟ble Special Bench in the case of ACIT vs Clough Engineering Ltd, reported in [2011] 09 ITR (Trib) 618 (Delhi)(SB). Accordingly, we hold that so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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