Case Law Details
RELEVANT EXTRACTS
2. The facts of the case are that the assessee is a Singapore based company engaged in the business of acquiring television programs, motion pictures and sports events and exhibiting the same on its television channels from Singapore. The assessee is a tax resident of Singapore in terms of Article 4 of the India Singapore Tax Treaty.
3. The assessee had entered into an agreement on January 25, 2002 with Global Cricket Corpn. Pvt. Ltd. (GCC) (also a tax resident of Singapore under the Treaty). Under the agreement, GCC has granted `rights’ to the assessee throughout the licensed territory. The term `rights’ under Sch-I to the agreement has been defined as the right to transmit, broadcast, exhibit, perform, include in cable programs and/ or otherwise distribute, make available to the public any moving visual or audio visual representations and/ or images of matches, players or play in any event, the feed, the highlights, package and any recording and other material by means of any media. The term `licensed territory’ has been defined under Sch-I to the agreement as India, Pakistan, Srilanka, Bangladesh, Singapore and Malaysia.
4. The ADIT initiated proceedings u/s. 201 of the I.T. Act on the assessee for non deduction of tax at source from payments made to GCC. During the course of Sec. 201 proceedings, the assessee made various written submissions before the ADIT, the gist of which is summarised below:
1. The territorial jurisdiction of the I.T. Act, 1961 is restricted to the Indian Territory and cannot be applied to a transaction carried out outside India.
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