https://www.taxtmi.com/caselaws?id=437893 Compensation paid to terminate a cricket participation arrangement and a non-compete covenant was treated as a capital receipt and not chargeable to tax in India, because the payment was linked to termination of a profit-making apparatus and no relevant operations were carried out in India. No dependent agent permanent establishment was proved under the applicable DTAA, as there was no evidence of habitual authority to conclude contracts on behalf of the foreign associations. As the underlying sum was not taxable in India, no withholding obligation arose under section 195; the alternative reliance on sections 115BBA and 194E was also rejected on the facts. en-us Thu, 11 May 2023 00:00:00 +0530 Tue, 26 Nov 2024 15:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=437893 Compensation paid to terminate a cricket participation arrangement and a non-compete covenant was treated as a capital receipt and not chargeable to tax in India, because the payment was linked to termination of a profit-making apparatus and no relevant operations were carried out in India. No dependent agent permanent establishment was proved under the applicable DTAA, as there was no evidence of habitual authority to conclude contracts on behalf of the foreign associations. As the underlying sum was not taxable in India, no withholding obligation arose under section 195; the alternative reliance on sections 115BBA and 194E was also rejected on the facts. Case-Laws Income Tax Thu, 11 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437893