Case Law Details
ESPN Star Sports Mauritius Vs DCIT (ITAT Delhi)
Facts- The appellant is a partnership firm established under Mauritius Law. It is engaged in the business of selling advertisement time and programme sponsorship from Mauritius in connection with the programming via non-standard television on ESPN, Star Sports and Star Cricket programming services. During the year under consideration, the appellant also entered into such services with respect to ESPN HD channel.
AO proceeded by attribution of profit to PE and attributed 30% of the gross advertising revenue and made attribution of INR 103,32,02,031/-.
Conclusion- Considering the past history of the assessee in light of the decision of this Tribunal read with the decision of the Hon’ble Supreme Court in the case of E-funds IT Solutions Inc., we hold that the assessee has no business connection in India in terms of section 9(1) of the Act and has no PE under Article 5(2), 5(4) and 5(5) of India Mauritius DTAA.
Since we have held that there is no PE, we are of the considered view that there cannot be any attribution of profit as held by this Tribunal in assessee’s own case in A.Ys 2009-10 and 2011-12.
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