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11. [2025] 175 taxmann.com 703 (Delhi - Trib.)
Trans World International LLC vs. DCIT
ITA NO. 1960, 1961 AND 2146 (DELHI) OF 2024
A.Y.: 2013-14 to 2015-16 Dated: 18 June 2025
Article 12 of India-USA DTAA – Broadcasting Right is a separate right from copyright, and consideration received towards live feeds cannot constitute royalty.
FACTS
The Assessee was a tax resident of USA. The Company entered into licensing agreements for broadcasting rights in respect of live and recorded events with various broadcasters. The Assessee offered income in respect of recorded feeds as royalty and claimed that income in respect of live feeds was not in nature of royalty. The Assessee claimed that recorded feed amounts to 5% of the overall consideration and offered such amount to tax as royalty.
Based on perusal of the agreement, the AO noted that the Assessee was granted rights for exploitation of feeds, including trademarks, logos, etc., and observed that granting of live feeds was for the creation of new copyrights and their exploitation. The AO rejected the bifurcation of receipts between live vs recor
