TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
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Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
Functional comparability governs software-service benchmarking: dissimilar companies are excluded, while related-party filters, margins and working-ca...
ITAT determined that payments made under a license agreement for audio and audiovisual rights between the assessee and Hungama for commercial exploitation of music content constituted minimum guarantee license fees rather than royalty payments. The agreement stipulated a guaranteed fee of Rs. 11,73,62,500/- for 6 years. The Tribunal rejected AO's classification of expenses as prior period expenses, noting dates in music titles reflected commercial exploitation start dates, not license acquisition. ITAT directed AO to conduct denovo assessment, treating payments as deferred revenue expenditure amortizable over six-year license period. The Tribunal emphasized proper allocation of costs during license duration while maintaining assessee's right to be heard during reassessment.
ITAT determined that payments made under a license agreement for audio and audiovisual rights between the assessee and Hungama for commercial exploitation of music content constituted minimum guarantee license fees rather than royalty payments. The agreement stipulated a guaranteed fee of Rs. 11,73,62,500/- for 6 years. The Tribunal rejected AO's classification of expenses as prior period expenses, noting dates in music titles reflected commercial exploitation start dates, not license acquisition. ITAT directed AO to conduct denovo assessment, treating payments as deferred revenue expenditure amortizable over six-year license period. The Tribunal emphasized proper allocation of costs during license duration while maintaining assessee's right to be heard during reassessment.
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