Revenue's Appeal Dismissed on Manufacturing Expenses Deletion for A.Y. 2008-09

The Revenue's appeal against the deletion of addition of Rs. 3,13,62,103/- as manufacturing expenses for A.Y. 2008-09 was dismissed. The Ld. CIT(A) relied on previous Tribunal decisions that such expenses are of revenue nature. The Tribunal upheld the allowability of expenditure on purchase of audio rights as revenue expenditure, citing earlier rulings. The Revenue's appeal was dismissed as no distinguishing facts were presented, following precedent.

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Issues involved: Appeal by Revenue against deletion of addition of audio right expenses as manufacturing expenses for A.Y. 2008-09.

Summary:
The Revenue appealed against the deletion of addition of Rs. 3,13,62,103/- made by the AO on account of audio right expenses treated as manufacturing expenses by the assessee for A.Y. 2008-09. The Ld. CIT(A) pointed out that the issue had been decided in favor of the assessee in earlier years by the Tribunal. The Ld. CIT(A) referred to previous decisions by ITAT 'E' and 'H' Bench for A.Y. 1990-91 to 2007-08, which held that such expenditures are of revenue nature. The Tribunal in ITA No. 599/Mum/09 had also previously ruled in favor of the assessee regarding the allowability of expenditure on purchase of audio rights treated as revenue expenditure. The Tribunal dismissed the Revenue's appeal as no distinguishing facts were presented by the Ld. Departmental Representative, thus following the previous decision. Consequently, the appeal filed by the Revenue was dismissed.

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