Commissioner Of Income Tax vs M/S. Sun Tv Network Limited
2022 Latest Caselaw 14326 Mad

                                                                                    T.C.A.No.311 of 2019




                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                               DATED : 11.08.2022

                                                      CORAM :

                        THE HONOURABLE MR. JUSTICE R. MAHADEVAN
                                           and
                  THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD

                                               T.C.A.No.311 of 2019

                  Commissioner of Income Tax,
                  Non Corporate Circle 20 (1),
                  Chennai 600 034.                                                                  ...
                  Appellant

                                                       Versus

                  M/s. Sun TV Network Limited,
                  73, MRC Nagar Main Road,
                  MRC Nagar, Sindhur Towers,
                  Chennai 600 028.
                  PAN: AADCS 4885 K                                                ...
                  Respondent



                            Appeal preferred under Section 260A of the Income Tax Act, 1961,
                  against the order dated 28.02.2007 passed by the Income Tax Appellate
                  Tribunal, “B” Bench, Chennai, in I.T.A.No.994/Chny/2018.
                            For Appellant         :      Mr.M.Swaminathan
                                                         Senior Standing Counsel
                                                         M/s.V.Pushpa,
                                                         Standing Counsel

https://www.mhc.tn.gov.in/judis
                  Page 1/6
                                                                                       T.C.A.No.311 of 2019




                            For Respondent           :     No appearance

                                                     JUDGMENT

(Judgment of the Court was delivered by R.MAHADEVAN, J.)

This tax case appeal has been filed by the appellant / Revenue,

challenging the common order dated 12.11.2018 passed by the Income Tax

Appellate Tribunal, “B” Bench, Chennai, I.T.A.No.994/Chny/2018, relating to

the assessment year 2009-10.

2.By order dated 11.06.2019, this court admitted the aforesaid tax case

appeal on the following substantial questions of law:

“(i) Whether on the facts and circumstances of the case, the Income tax Appellate Tribunal was right in holding that the right are found incapable of sustained exploitation after the first broadcast and hence considering the principles of consistency and nature of expenditure, the same has to be treated as revenue in nature, since the assessee does not derive enduring benefit, when films once broadcasted are not going out of shelf.

(ii) Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in reversing the capitalization of the expenses by the Assessing https://www.mhc.tn.gov.in/judis Page 2/6 T.C.A.No.311 of 2019

Officer when the fact remains that as per accounting standards issued by the Institute of Chartered Accountants of India, copy rights in films/serials are intangible assets and writing off of entire cost of the acquiring such rights at the first broadcast itself on the ground that future revenues are not ascertainable with reasonable accuracy, cannot be accepted as it neither adheres to the principles of accounts standards nor income tax law?"

3. When the matter was taken up for consideration, the learned counsel

appearing for the appellant / Revenue submitted that during the pendency of

this tax case appeal, the assessee has filed the requisite Forms 1 and 2 under

Section 4 of the Direct Tax Vivad Se Vishwas Act, 2020, which were accepted

and Form 3 was issued to the assessee on 21.04.2021 by the Income Tax

Department. The learned counsel has also filed Form 3 dated 21.04.2021 to

that effect.

4. Despite the service of notice and the name of the respondent having

been printed in the cause list, there is no representation on behalf of them.

5.This court heard the submissions made by the learned counsel

appearing for the appellant, as per which, the assessee has already availed the

https://www.mhc.tn.gov.in/judis Page 3/6 T.C.A.No.311 of 2019

benefit conferred under the beneficial legislation viz., the Direct Tax Vivad Se

Vishwas Act, 2020, enacted for resolution of disputed tax and for matters

connected therewith or incidental thereto, which came into force with effect

from 17.03.2020; and the declarations submitted by the assessee were also

accepted and Form 3 was also issued to them by the Income Tax Department.

In view of such development, it is unnecessary for this court to decide the

substantial questions of law arisen in this tax case appeal.

6.Therefore, recording the submissions so made by the learned counsel

appearing for the appellant, this appeal stands disposed of, directing the

department to process the application in accordance with the Act and

communicate the decision to the assessee at the earliest. No costs.

                                                                   [R.M.D., J.]    [J.S.N.P., J.]
                                                                            11.08.2022

                  Internet : Yes
                  Index : Yes / No
                  av



                  To

1. The Income Tax Appellate Tribunal, “B” Bench, Chennai.

https://www.mhc.tn.gov.in/judis Page 4/6 T.C.A.No.311 of 2019

2. The Commissioner of Income Tax, Non Corporate Circle 20 (1), Chennai 600 034.

3. The Assistant Commissioner of Income Tax, Non-Corporate Circle 20 (1), Chennai - 34.

4. The Commissioner of Income Tax (Appeals) - 14, Chennai.

https://www.mhc.tn.gov.in/judis Page 5/6 T.C.A.No.311 of 2019

R. MAHADEVAN, J.

and J.SATHYA NARAYANA PRASAD, J.

av

T.C.A.No.311 of 2019

11.08.2022

https://www.mhc.tn.gov.in/judis Page 6/6