Following the order of the earlier year the Tribunal held that there was no transfer of copyright, title or ownership interest from the assessee to the Indian company, that broadcast reproduction right was distinct and separate from copyright, and that, therefore, the distribution revenue received by the assessee from W towards the grant of distribution rights of its channels constituted business income, not royalty. The additions made by the Assessing Officer is deleted.(AY. 2020-21, 2021-22)
Turner Broadcasting System Asia Pacific Inc., USA v. Dy. CIT (2024) 115 ITR 21 (SN) (Delhi)(Trib)
S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Selling advertising in, and distribution of, television channels in India through Indian company-No transfer of copyright, title or ownership interest to Indian company-Receipts taxable as business income and not royalty-DTAA-India-USA.[S.9(1)(i), Art 12]