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TMI Blog2018 (9) TMI 1702X X X X Extracts X X X X X X X X Extracts X X X X ..... ified in Section 9. This simply means that a representative assessee would represent all income accruing or arising in India and not in a foreign country directly or indirectly from any business connection in India. It goes without saying that the representative assessee not only represents an income which has directly arisen or accrued in India but also that which has indirectly arisen or accrued in this country, through a business connection. Tribunal has made a complete misunderstanding of the law in entertaining the opinion that since the income made by the nonresident Cricket Boards were held to have directly arisen in India, this income could not be deemed to have arisen or accrued to the non-resident in India and the responsibilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and alters the rules of the game, sets the different levels and minimum standards at which the game is to be played in each country to get its recognition, the different formats of the game, e.g. test cricket, first class cricket, limited overs competition and so on. It has affiliates from similar organisations in countries, all over the world. ICC may first recognise a country s team to be fit to compete in the limited overs competitions and thereafter declare it fit to play test cricket. It controls, supervises and regulates the game of cricket in every respect. Not only does it recognise countries and teams, it also certifies the fitness of venues, grounds where the game is intended to be played at the international level. It sets a y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act, 1961. It held that only that proportion of the total fund received by any country from PILCOM which was equal to the ratio of the number of matches played by such country to the total number of matches played by that country in the tournament should be considered to be income arising or accruing to the cricket association of that particular country. Tax should be deducted at source in respect of this portion of the payment made by it to a particular association. Both PILCOM and the revenue preferred appeals against this order of the tribunal before this High Court. These appeals [(2011) 335 ITR 147 (Cal)] were decided on 11th November, 2010. Both the appeals were dismissed with the observation that the order of the tribunal did not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by the Assessing Officer without considering its earlier decision wherein the Learned Tribunal held that the order under Section 163 treating PILCOM as agent of Non-Resident Boards and players was valid? At this stage it is necessary to analyse certain provisions of the Income Tax Act, 1961. Section 5(1) states that the total income in any previous year of a person who is a resident of India includes all income which is received or deemed to be received in India or which accrues or arises or is deemed to accrue or arise in India or accrues or arises to him outside India. Under Section 5(2), the total income of a non-resident includes all income which is so received or deemed to be received in India or has accrued or arises ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 merely tries to classify the income which is deemed to accrue or arise in India by saying that it should inter alia arise from business connection of the non-resident with India. Section 160 makes it abundantly plain that a representative assessee would represent the assessee in respect of a non-resident in respect of his income specified in Section 9. This simply means that a representative assessee would represent all income accruing or arising in India and not in a foreign country directly or indirectly from any business connection in India. It goes without saying that the representative assessee not only represents an income which has directly arisen or accrued in India but also that which has indirectly arisen or accrued in this coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on arose in India, a representative assessee could not be liable because it was only liable according to it in respect of the income which was deemed to have arisen in India. The effect of the order of the Tribunal is that inspite of a foreign resident having an agent in India and income directly arising in this country to the foreign resident, the agent would escape liability to assessment. In those circumstances, the order of the Tribunal dated 6th June, 2007 is set aside. The questions of law framed by the order of this Court dated 26th August, 2008 are answered in the affirmative in favour of the Revenue. The orders of the Assessing Officer and of the Commissioner of Income Tax (Appeals) are affirmed. The points left open by the trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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