2012 (5) TMI 861

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....n holding that the payment towards live telecast of the events are not royalty payments." 2. After hearing rival contentions and on perusal of the material available on record, we find that this issue is covered against the Revenue and in favour of the Assessee by the decision of a co-ordinate bench of this Tribunal in assessee's own case in ITA no.1079/Mum./2008, vide order dated 17^th April 2012, wherein the Tribunal held as follows:- "3. We have considered the rival submissions and perused the relevant material on record. The ld. AR has placed on record a copy of the order passed by the Mumbai Bench of the Tribunal in ADIT(IT) vs. Neo Sports Broadcast Pvt. Ltd. in ITA No.99/Mum/2009. Vide this order dated 09-11-2011, the Trib....

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....f art. 12(7) of the treaty, royalties cannot arise in India, since the payer is not a resident of India. Such royalties under the first limb of art. 12(7) of the treaty arise in Singapore since the payer (i.e. the assessee) is a resident of Singapore. The second limb of art. 12(7) of the treaty deals with a scenario where the payments are made by a non-resident, where such float resident has a PE in India. However, a mere existence of a PE in India cannot lead to a conclusion that royalties arise in India. In addition to the existence of PE for royalties to arise in India under art. 12(7) of the treaty, it is essential that liability to pay such royalties has been incurred in connection with" and is born by" the PE of the payer in India. Ba....