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Showing contexts for: bbc act in Bbc Worldwide Ltd, New Delhi vs Assessee on 15 January, 2010Matching Fragments
2.1 In order to appreciate the controversy regarding existence or otherwise of assessee's PE in India, the facts mentioned by the ld. CIT(Appeals) may be reproduced here:-
"Appellant is a company incorporated under the laws of United Kingdom and is a tax resident of UK within the meaning of Article 4 of the Double Taxation Avoidance Agreement between India and UK ( in short DTAA). The appellant is wholly owned subsidiary of BBC Commercial Holdings Limited. It operates as an international consumer media company in the areas of television, publishing, product, licensing, internet and interactive. As part of its business activity, appellant runs and operates the BBC Worldwide International news and information channel (in short BBC World channel) under a separate division BBC World Division. During the financial years under consideration appellant primary source of revenue in India was from sale of airtime for the BBC World Channel i.e., appellant company was earning advertisement revenue in India. In order to sell airtime for BBC World channel, the appellant entered into an agreement with BBC Worldwide (India) Pvt. Ltd. (in short BWIPL) on 1st February, 1999. Under the agreement BWIPL was appointed as exclusive agent of appellant for soliciting orders for sale of airtime on BBC World channel, negotiating agreement and collection of advertisement revenue from Indian advertiser on behalf of appellant and remitting the same to the appellant. BWIPL was also engaged in marketing and distribution of BBC World Channel under another agreement. In consideration of the above services BWIPL was paid a commission of 15% of airtime sale/sponsorship generated by it for appellant. It is pertinent to mention here that w.e.f. 1.12.2002 the appellant transferred BBC World Division which operates BBC World Channel to another group company M/s BBC World Limited and above referred to agreement between the appellant and BWIPL was novated in favour of M/s BBC World Limited and w.e.f. 1.12.2002 BWIPL had started acting as agent of BBC World Limited."