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TMI Blog2014 (5) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... e payment made to Artists for performance in India but it was not deducted at source on the commission paid to Mr. Colin Davie who acted as an agent between the Assessee and the Artists performed in India. Mr. Colin Davie did not perform any services in India, but they were rendered outside India - thus, the commission income to the agent is not liable to tax in India - There was no obligation on the part of the assessee to deduct the tax at source at the time of making of payment - in the facts peculiar to the case of Mr. Colin Davie, Article 18 and particularly clause (2) is not attracted - The payment in relation thereto is not in terms of clause (2) of Article 18 - Mr. Colin Davie's commission income cannot be said to be taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrectly understood the limited controversy. The limited controversy was with regard to reimbursement of the expenses to the performing artist. Though the performing Artist are engaged through Agent Mr. Colin Davie, they were engaged for performance in India but Mr. Colin Davie negotiated with them in terms of the authority given by the Assessee, outside India. The expenses for transfer and performance actually incurred have been reimbursed and that was one of the issues. The second one pertains to the payment made to Mr. Colin Davie. The argument was that the tax was required to be deducted for such payment and which has not been done. 5. The Assessing Officer held that the performance of the Artist was in India. The Assessee is the Even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r filed return. The Commissioner Income Tax (Appeals) held that the Assessing Officer has completely misdirected himself. The Commissioner of Income Tax (Appeals) held that there is a common practice that the amount has to be remitted in advance to incur the expenses. The copies of the invoices submitted in respect of major expenses were produced on record. Even the Artists had performed in India and for that expenses have to be incurred and reimbursement of such expenses do not constitute income derived by these artists from their personal activities so as to be taxable under Article 18 of the Indo-UK DTAA. Thus, the reimbursement of expenses is not taxable in India. 6. The Tribunal has understood the controversy in the right perspectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia. He contacted the Artists and negotiated with them for performance in India in terms of the authority given by the respondent -assessee. It is in these circumstances that the Commissioner of Income Tax (Appeals) and the Tribunal arrived at the conclusion that said Mr.Colin Davie did not perform any services in India, but they were rendered outside India. Therefore, commission income to the agent is not liable to tax in India. There was no obligation on the part of the assessee to deduct the tax at source at the time of making of payment. The issue, thus, has been examined by the Tribunal from the angle of payment of remuneration to the Artists and which services rendered by the Artists in India. In that regard, tax has been deducted at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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