Decided on September 15,2014

Agence France Presse Appellant
ADIT Respondents


A.T.Varkey, Member (J) - (1.) THIS appeal by the Assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals) -XI, New Delhi dated 28.12.2010 pertaining to assessment year 2006 -07.
(2.) THE assessee filed abridged grounds of appeal for all the assessment year which are identical are reproduced as under: - "1. That the order of the learned Dispute Resolution Panel -1 (hereinafter referred to as DRP -1) is bad in law and on facts. 2. That the learned DRP -1 has erred on facts and in law in confirming the addition of Rs. 3,12,77,885.72 received by the appellant as Royalty without appreciating the fact that the payment has been received under the Agreements for sale of information and not for transfer of any copyright. Without prejudice to Ground No. 2 above, the learned DRP -1 has grossly erred in ignoring the settled position that news reporting is beyond the purview of copyright as stipulated in Section 52 of the Copyright Act. 3.WITHOUT prejudice to Grounds 2 and 3 above, the learned DRP -1 is not correct in law and in facts in holding that news reporting is covered under section 13 of the Copyright Act. 4.THAT the learned DRP -1 has erred in law in upholding the action of the Assessing Officer in charging interest under section 234B of the Act of Rs. 36,67,329/ - by stating that the charge of interest is consequential even though the provisions of section 234B of the Act do not apply as the payer is liable to deduct the full tax at source and accordingly the appellant (non resident) was not liable to pay advance tax on the said amount."
(3.) The principal issue arising in the instant appeal is whether any copyright subsists in the news reports & photographs distributed/circulated by the assessee within India in terms of relevant provisions of Copyright Act, 1957, and accordingly, such impugned copyright qualify as 'royalties' within meaning ascribed under Paragraph 3 of Article 13 of DTAA between India and France read with Explanation 2(v) to Section 9(1)(vi) of the Income Tax Act during the relevant year.;

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