Income Tax Appellate Tribunal - Chennai
Acit, Chennai vs Sun Tv Network Limited, Chennai on 14 August, 2017
आयकर अपील य अ धकरण, 'सी' यायपीठ, चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL
' C' BENCH : CHENNAI
ी एन.आर.एस. गणेशन, या यक सद य एवं ी एस जयरामन, लेखा सद य केसम
BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND
SHRI S.JAYARAMAN, ACCOUNTANT MEMBER
आयकर अपील सं./I.T.A.No1309/Mds./2017
नधा रण वष /Assessment year : 2012-13
The Assistant Commissioner of Vs. M/s.Sun TV Network Ltd.,
Income Tax, Murasoli Maran Towers,
Non-corporate Circle-20(1), 73,MRC Nagar Main Road,
Chennai-600 034. MRC Nagar, Chennai 600 028.
[PAN AADCS 4885 K ]
(अपीलाथ /Appellant) ( यथ /Respondent)
अपीलाथ क! ओर से/ Appellant by : Mr.Sailendra Mamidi,PCIT,DR
#$यथ क! ओर से /Respondent by : Mr.N.Devanathan, Advocate
सन
ु वाई क! तार(ख/Date of Hearing : 10-08-2017
घोषणा क! तार(ख /Date of Pronouncement : 14-08-2017
आदे श / O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
This appeal of the Revenue is directed against the order of the Commissioner of Income-tax (Appeals)-14,Chennai dated 24.03.2017 pertaining to assessment year 2012-13.
:- 2 -: ITA No.1309/Mds./2017
2. The first issue arises for consideration is addition made by the Assessing Officer towards purchase of movies, programme production expenses, amortization of film and Broadcast rights, consumables and Media expenses at `117.98 crores.
3. We have heard the submissions of Mr.Sailendra Mamidi, ld. Departmental Representative and Mr.N.Devanathan ld. Authorised Representative of assessee. It is brought to notice of the Bench that an identical issue came before this Tribunal for assessment year 2011-12 in assessee's own case in ITA No.1340 & 1341/Mds./2015. This Tribunal after considering the earlier decision in assessee's own case in ITA Nos.1515 to 1520/Mds./2013 for assessment years 2004-05 to 2009-10 vide order dated 31.10.2013 found that the similar expenditure incurred by the assessee has to be allowed as a revenue expenditure. The ld. CIT(A) in fact, allowed the claim of assessee by placing reliance on the Order of Tribunal for the earlier assessment years 2004-05 to 2009-10 vide order dated 31.10.2013. Therefore, this Tribunal do not find any reason to interfere with the order of Ld.CIT(A). Accordingly, the order of Ld.CIT(A) is confirmed in the departmental appeal.
4. The Second issue arises for consideration is deferred revenue expenditure.
:- 3 -: ITA No.1309/Mds./2017
5. We have considered the rival submissions on either side and perused the relevant material available on record. This issue also subject matter of discussion before this Tribunal in assessee's own case for assessment years 2004-05 to 2009-10 vide order dated 31.10.2013 in ITA Nos.1515 to 1520/Mds./2013. This Tribunal specifically found that the monies received are shown as deferred revenue in the year of receipt and are offered as income in the year when programme is aired. The Ld.CIT(A), in fact followed the Order of Tribunal in assessee's own case vide order dated 31.10.2013. Therefore, this Tribunal do not find any reason to interfere with the order of Ld.CIT(A). Accordingly, the order of Ld.CIT(A) is confirmed in the departmental appeal.
6. The last issue arises for consideration is disallowance made by the ld. Assessing Officer u/s.40(a)(ia) of the Act.
7. The ld.D.R submitted that the Ld.CIT(A) directed the Assessing Officer to allow the claim of assessee in the year in which the tax was deducted. However, the ld. Counsel for the assessee submitted that recipient of the amount has already paid the tax, therefore, it is to be allowed during this year. The fact remains is that the assessee has not deducted the tax. It is not in dispute that the assessee was not liable to deduct tax. When the recipient has paid the money, there may not be any disallowance during the year under consideration. In case, the recipient has not paid the tax during the :- 4 -: ITA No.1309/Mds./2017 year under consideration, then as rightly directed by the Ld.CIT(A), the claim of assessee is to be allowed in the year in which the tax is paid to the Government exchequer. With the above observation, this Tribunal do not find any reason to interfere with the order of Ld.CIT(A) and accordingly the same is confirmed.
8. In the result, the appeal of the Revenue is dismissed. Order pronounced on 14th August, 2017, at Chennai.
Sd/- Sd/-
(एस जयरामन) (एन.आर.एस. गणेशन)
(S. JAYARAMAN) (N.R.S. GANESAN)
लेखा सद!य/Accountant Member या#यक सद!य/Judicial Member
चे नई/Chennai
,दनांक/Dated: 14th August, 2017
K S Sundaram
आदे श क! # त.ल/प अ0े/षत/Copy to:
1. अपीलाथ /Appellant 4. आयकर आयु1त/CIT
2. #$यथ /Respondent 5. /वभागीय # त न3ध/DR
3. आयकर आयु1त (अपील)/CIT(A) 6. गाड फाईल/GF