Held that payment of compensation to overseas cricket association for premature termination of agreement. Payment is not chargeable to tax in the hands of South Africa Cricket Board, Cricket South Africa (CSA). There is o obligation to deduct tax at source. Tribunal also held that there is nothing on record to show that the assess had the authority to conclude contracts in the name of CSA and has habitually exercised the said authority, therefore the assessee cannot be treated as PE of CSA in India as per provisions of art.5(5)of the DTAA between India and South Africa. (AY. 2016-17)
The Board of Control for Cricket in India v. Dy. CIT(2023) 224 TTJ 137 / 150 taxmann.com 246 (Mum)(Trib)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Payment of compensation to overseas cricket association-Premature termination of agreement-Payment is not chargeable to tax in the hands of South Africa Cricket Board-Cricket South Africa (CSA)-No obligation to deduct tax at source-No Permanent Establishment in India-DTAA-India-South Africa. [S. 5(2), 90, 115BBBA, 194E, 195 Art.5(5), 7]