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December 2024

Reassessment — Initial notice and order — Notice — Validity — Non-resident — Receipt of licence fee from Indian payer on grant of live transmitting right of match under agreement — Agreement bifurcating licence fee between live feed and recorded content — Receipt not liable to tax in India — Notices and order quashed.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 2 mins

64 Trans World International LLC TWI vs. Dy. CIT (International Tax)

[2024] 467 ITR 583 (Del)

A.Ys.: 2016–17, 2017–18, 2018–19

Date of order: 14th August, 2024

Ss. 147, 148, 148A(b) and 148A(d) of ITA 1961

Reassessment — Initial notice and order — Notice — Validity — Non-resident — Receipt of licence fee from Indian payer on grant of live transmitting right of match under agreement — Agreement bifurcating licence fee between live feed and recorded content — Receipt not liable to tax in India — Notices and order quashed.

The assessee, non-resident, received payments, under a single agreement, for the A.Ys. 2016–17, 2017–18 and 2018–19 with an Indian entity for the grant of exclusive rights for telecast of league matches. The Assessing Officer issued an initial notice u/s. 148A(b) of the Income-tax Act, 1961 on the grounds that tax was not deducted at source from such receipt received from an Indian payer even though it was income chargeable to tax in India, passed an order u/s. 148A(d) and issued a consequential notice u/s. 148. The Assessing Officer recorded reasons that only a nominal fr

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