SC upholds HC view that tax may be levied on F1 event

Says FOWC has permanent establishment for business in India and income accruing from it is taxable

In a big win for the income tax department, the Supreme Court has held that the Formula One World Championship (FOWC) in motor racing is liable to be taxed in India for the F1 Grand Prix Championship.

The apex court has upheld the view of the high court (HC) here, that FOWC has a permanent establishment (PE) in India. In this case, the Buddh International Circuit constituted this, on account of the assessee's continued presence for two weeks prior and one week after the race. Hence, the payment to FOWC from the Jaiprakash Associates group is liable to be taxed in