Calcutta HC reverses ITAT
order and rules in favour of Revenue for AY 1996-97, holds PILCOM as agent of
Non-Resident Cricket Boards in relation to 1996 World Cup receipts; Pursuant to
ICC choosing Pakistan, India and Sri Lanka to co-host the World Cup 1996, a
joint management committee of these three countries (PILCOM)] was formed which
paid guarantee money to cricket associations of various countries and other
sums from bank account in London; While the AO had made an assessment of income
u/s. 147 for all the cricket boards through PILCOM, ITAT had quashed the same
and had held that PILCOM could not be held liable as agent u/s. 163 as the
income had accrued in India and it could not be said to be deemed to have
accrued in India; Referring to Sec. 5 (scope of total income), Sec. 9 (income
deemed to accrue/ arise in India) and Sec. 163 (relating to non-resident
agent), HC holds that ITAT completely misinterpreted the law, remarks that “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.”;
Noting that the short title to Sec. 9 describes the income as deemed to accrue
or arise in India, HC clarifies that “Use of this title does not absolve the
representative assessee of the duty to account for any income which has
directly or deemed to have arisen to the non-resident in this country.”
:HC
No comments:
Post a Comment