ESPN Star Sports Gets Tax Respite, ITAT Won’t Increase Its £752 Crore Revenue For AY15

In a breather for ESPN Star Sports, delhi bench from Income Tax Court of Appeal (THIS IN) has excluded a £752 crore addition to its 2014-2015 (AY) income by the tax authorities.

The company has reported income of £90 crore for 2014-15. His income tax return was scrutinized and the appraiser attempted to add £752 crore to the company’s income, which it had transferred to its parent company.

The tax authorities claimed that the payment was a fee, but ESPN Start Sports disputed this claim, which filed an objection with a dispute resolution panel, stating that the income could not be treated as a fee.

However, the commission upheld the evaluator’s decision, stating that the live television broadcast of the event was the result of “scientific work” and its payment would fall under the definition of “fee”.

ESPN Star Sports filed an appeal against the order in front of the ITAT court in Delhi.

“We believe that the fee received for the live broadcast cannot be taxed as a “fee” … we decide this issue in favor of the taxpayer,” the ITAT panel said in a ruling, citing decisions in other cases.

The court granted the appraiser’s appeal and ordered the appraiser to remove the addendum. The company declined to comment on the matter.