TMI Blog2016 (2) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... l. Taxability on distribution revenue - Held that:- Since this issue has been decided in favour of the assessee by holding that the same is not taxable on the ground that it has been paid at Arm‟s length price, therefore, this ground becomes purely academic Taxability on distribution revenue and taxability of interest received u/s.244A - Held that:- 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 (5) TMI 562 - ITAT, DELHI ]. - ITA No.8748/Mum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble DRP erred in not appreciating that even assuming (without admitting) that the Appellant has a PE in India, payment of arm's length remuneration to Multi Screen Media Private Limited ( MSMI ) in relation to the marketing of airtime extinguishes the tax liability of the Appellant in India. 4. Without prejudice to the above, on the facts and circumstances of the case and in law, the Learned AO erred in estimating, and the Hon'ble DRP erred in confirming, that 10% of the advertisement revenues are taxable in India even though the Appellant had suffered losses during the year. 5. Without prejudice to the above, on the facts and circumstances of the case and in law, the Learned AO and the Hon'ble DRP erred in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned AO erred in holding, and the Hon'ble DRP erred in confirming, that the interest received under Section 244A of the Income Tax Act, 1961, of India (the Act ) on tax refunds for various assessment years is taxable in the year under consideration without appreciating the fact that the same cannot be said to have accrued to the Appellant as the tax liability for those assessment years has not yet attained finality. 9. Without prejudice to above, even assuming (without admitting) that interest received is taxable in the year under consideration, 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 interest received is taxable under Article 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit of ₹ 115,910 claimed with respect to the letter dated November 22, 2010, ignoring the specific directions given by Hon'ble DRP in this regard. 3. In brief the facts of the case are that M/s MSM Satellite (Singapore) Pte Ltd. is a company incorporated in Singapore and has been stated to be a tax resident of Singapore. The assessee is a media company and is engaged in the telecasting of channel by the name of SET SET MAX, PIX and SAB over the Indian subcontinent. The assessee filed its return of income declaring total income of ₹ 43,233,216/- for the assessment year 2007-08 and ₹ 336,956,516/- for the assessment year 2008-09. The case of the assessee for both the assessment year under consideration were selec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advertisement revenue, the Tribunal in its order dated 28-8-2015 has decided the issue in favour of the assessee and against the revenue. The relevant observations of the Tribunal in this regard are as under :- 11. After considering the rival contention and above facts, we find that, so far as the issue relating to addition on account of advertisement revenue‟ and distribution revenue‟ the same stands decided in favour of the assessee by the Tribunal, which has been affirmed by the Hon‟ble High Court in AY 1999-2000 and also in subsequent years. As regards the issue of distribution receipts‟ treated as royalty income‟, we find that this has been treated as business income and such a finding or conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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