9911796707
TMI Blog2012 (4) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... M: This appeal filed by the department is against the order dated 8th March, 2004 of the CIT(A)-XXXI, Mumbai. 2. The only issue involved in this appeal is as to whether the consideration paid by the assessee to Set Satellite (Singapore) Pte. Ltd., for acquiring the non-exclusive rights to distribute SET and SETMAX Channels is in the nature of Royalty taxable @ 15% on gross basis under Article 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration for the distribution of the nonresident TV channels in India. The said Non-resident company does not have Permanent Establishment (PE) in India as per Article 5 of the DTAA and, accordingly, its business is not taxable in India. 4. Pursuant to an application made by Non-resident company, the Assessing Officer issued a withholding tax certificate dated 6th May, 2003 directing taxes @ 15% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) while examining the issue has stated that the Non-resident company has granted non-exclusive distribution rights of the channels to the assessee and has not given any right to use or exploit any copyright. The assessee is no way concerned whether the programs broadcast by the Non-resident company are copyrighted or not. The said distribution is purely a commercial right, which is distinct from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o it by a broadcaster without any editing, delays, interruptions, deletions, or additions and, therefore the payment made by the assessee to the Non-resident company is not for use of any copyright and consequently cannot be characterized as Royalty. Ld CIT(A) has held that Broadcasting Reproduction Right is not covered under the definition of Royalty under section 9(1)(vi) of the Income tax Act a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us, the Tribunal in the case of recipient company i.e. Non-resident company treated the amount paid by the assessee to Non-resident company, as business income. Ld D.R. has not disputed the above facts. 8. In view of above, we do not find any infirmity in the order of ld CIT(A) that consideration paid by the assessee to the non-resident company for acquiring nonexclusive right to distribute TV ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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