Live telecast rights receipts are not royalty where precedent and treaty position place them outside section 9(1)(vi).

Receipts from granting live telecast rights for cricket matches were treated as not constituting royalty under section 9(1)(vi) of the Income-tax Act, 1961. The analysis relied on binding judicial precedent dealing with similar live transmission receipts and applied the principle that such income falls outside the statutory scope of royalty. Where the treaty position was relevant, it was considered to prevail, reinforcing the conclusion that live telecast receipts could not be taxed as royalty. The issue was resolved in favour of the assessee.

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Issues: Whether the consideration received for grant of live telecast rights for a cricket event constituted royalty chargeable to tax under section 9(1)(vi) of the Income-tax Act, 1961.

Analysis: The receipt in question arose from granting broadcasting rights for live telecast of cricket matches. The issue was held to be covered by binding judicial precedent which had examined similar live transmission receipts and concluded that such income did not fall within the scope of royalty under section 9(1)(vi). The decision also proceeded on the basis that the applicable treaty position would prevail where relevant, and that live telecast receipts could not be brought to tax as royalty on the reasoning adopted for live transmission rights.

Conclusion: The receipt from live telecast rights was not royalty and was not taxable as royalty under section 9(1)(vi) of the Income-tax Act, 1961. The issue was decided in favour of the assessee.

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