Granting non-exclusive broadcasting rights of feature films cannot be termed as ‘royalty’

Asia Today Limited Vs ADIT (International Taxation) (ITAT Mumbai) ITAT Mumbai held that amount received for grant of non-exclusive broadcasting rights of feature films cannot be termed as “royalty” within the parameters of “royalty” as defined in Explanation-2 to section 9(1)(vi) of the Act. Accordingly, the appeal is allowed and order set aside. Facts- The Assessee, being a foreign telecasting company incorporated in Mauritius and having tax residency certificate of Mauritius , during the AY under consideration was engaged in the production and acquiring rights of various television ...